Three versions of revenue: how to standardize safely

It’s the classic CFO nightmare.

• Salesforce says Revenue is CHF 12.5M.
• SAP says Revenue is CHF 11.8M.
• Hyperion says Revenue is CHF 12.1M.

Who is lying? Usually, nobody. They are just speaking different languages.

The Trilemma

1. CRM (The Optimist): Sales records bookings. It’s a promise of future money. It often ignores cancellations or credit holds.
2. ERP (The Realist): Finance records invoiced amounts. It’s what we legally asked to be paid.
3. Consolidation (The Final Word): This accounts for revenue recognition rules (IFRS/GAAP), intercompany eliminations, and FX adjustments.

The problem arises when you try to smash these three numbers into one dashboard without explaining the bridge.

How to Standardize Safely

Don't try to force them to match perfectly day-to-day. It’s impossible and often incorrect. Instead, build a Reconciliation Bridge.

The Bridge Dashboard

Create a specific view that shows: CRM Bookings - Cancellations - Timing Diff = ERP Invoiced

Then: ERP Invoiced - Intercompany + RevRec Adj = Reported Revenue

The Rules of Engagement

• Never label a Sales Booking as "Revenue" in an executive report. Call it "Bookings" or "Sales Volume".
• Automate the bridge. If you are doing this reconciliation manually in Excel every month, you are wasting days of high-value controller time.
• Educate the business. Explain to the Sales lead why their number isn't the one in the annual report.

Standardization isn't about forcing numbers to change; it's about making the differences transparent.

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