Disclaimer: The following advice is offered as a guide only. You should discuss your resurgence application with your accountant or financial advisor.


Introduction

When the government announces a resurgence support payment, there are two methods of calculation that your accountant may advise you to use depending upon circumstances:


  1. Cash based revenue (from cash book or bank statement)
  2. Accrual based revenue (from sales reports)


Cash based may suit if customers have not been paying on time due to Covid-19 (confirm this with your accountant before applying this method)

Whereas the normal method of calculating revenue is from the sales reports.


How to create the Revenue/Sales Report


1: At Platform, select the 'Sales Reports' button



2: Select the 'Special' option



3: Choose a period



(1) This is the 'Average Revenue Calculation Period'

(2) Revenue Drop Periods


Closed Only documents and closed date are used.



This will generate a spreadsheet of data that you can use to perform the calculations required.


IDEA: Method of Calculating Periods of Interest

1: Create a spreadsheet so that you can keep a record of your calculations.


Resurgency Calculation
1
Calculate your pre-lockdown average revenue
6 weeks prior to the 17/08/2021
week 16/7/202112/7/2021
week 213/7/202119/7/2021
week 320/7/202126/7/2021
week 427/7/20212/8/2021
week 53/8/202109/08/2021
week 610/08/202116/08/2021
Use these dates in the sales report
6/7/202116/08/2021
2
Total Revenue from SALES REPORT =
$2,203(REPORT)
3
Weekly Average Revenue - Divide REPORT by 6
6 week period
$367
(Divide REPORT by 6)
4Revenu Drop1st RSP2nd RSP3rd RSP4th RSP5th RSP6th RSP
Calculation PeriodsFrom17/8/20218/9/20211/10/202122/10/20215/11/202119/11/2021
To1/11/20211/11/20211/11/20211/12/20211/12/20211/12/2021
Days775532352113
5Revenue reduction =Total Revenue$1,000.00$1,000.00$1,000.00$1,000.00$1,000.00$1,000.00
(A) - (B)Weekly average$90.91$127.27$218.75$200.00$333.33$538.46
6Percentage drop =Reduction$276.26$239.89$148.42$167.17$33.83-$171.29
(C) / (A)Percentage reduction75.24%65.34%40.42%45.53%9.21%-46.65%



If you require any further assistance, please email support@soeasy.co.nz



RESOURCES


Calculate the days between dates. https://www.timeanddate.com/date/durationresult.html