There are several points that need to be considered:
- To be able to select the original transaction from a list
- Choose which account to balance to
- A transaction may already part realized
- A transaction may start to be realized in the future
- Input starting and ending dates for the transaction
- Dimensions must be carried across
Dealing with Deferred Revenue
We have two software licence invoices posted to the system this month and we want to create a journal to deal with the deferred revenue, we have already supplied services the first invoice, the is a renewal that starts at a future date
The Request Form
The First Invoice
As you can see we are already within the period covered by this Invoice, the date we are processing this invoice is still in June, so we do not want to defer any revenue that we have already provided services for, the two accounts we used for this example are:
6955 - Service Contract Sale to post the invoice to
5797 - Prepaid Software Contracts to defer the revenue
We run the report select a Journal Template and Journal Batch, lookup or enter account number 6955 then drill down and pick up the Invoice Entry, we then enter the start and end date for the service contract duration
You can see that the first recurring entry will be in July and the amount to process has taken into account the expired days, as the value could not be divided by 10 the report created the last Journal Entry with the 0.02 difference, we then press the button to transfer the lines to the Recurring Journal
In this example six lines have been created, the first two reverse out the remaining amount to the deferred revenue account, this will run just the once, the next two lines are the fixed recurring values and will run for 9 months, the last two lines complete the process and deal with the final transaction.
The Second Invoice
This invoice has been paid to cover services that are not yet due, and will start in the middle of August so we need to defer the whole invoice and in the first and last months deal with the part month values
As the first Invoice here is the request form
The first Journal entry for the part month will only cover the first 8 days, this will be followed by 11 fixed months, and a part month to complete, this will be eight lines, and as you can see all dimensions are copied from the original line.
The report can be downloaded without any need for registration from the downloads page on my website, any feedback is welcome here on this blog Adeptris on WordPress
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