Deferred Revenue (Daily View)

This Help File Page was last Modified on 03/26/2018

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Deferred Revenue (Daily View)

This Help File Page was last Modified on 03/26/2018

First, read these chapters to understand how to start Deferring a portion of your Company's Recurring Revenue:

1.Defining Recurring Revenue Types  

2.Deferred Revenue Start Up  

3.Earned/Deferred Revenue Report

4.If your Company will (or plans to) be using the General Ledger module:

a.Understanding Earned and Deferred Revenue

b.Post Deferred Revenue

 

For General Ledger System Users - When a Recurring Revenue Item is billed automatically, the question is:

When is the Recurring Revenue Earned for the First Month of the Period of Service being billed, and when is that First Month's Recurring Revenue Deferred to the next Month?

a)When the Auto Billing Sale Date entered is within the First Month of the Period of Service being billed, and the Starting Day - which is identified in the Billing Cycle record - is the First day (i.e., '1') of the Month and Year of the Period To Bill chosen in the Auto Billing dialog, the First Month is Earned and posted on the last day of that First Month using Post Deferred Revenue procedure);

b)Otherwise, that First Month's Recurring Revenue is Deferred until the next Month as described below (these are the only other possible cases):

i.The Auto Billing Sale Date entered is dated within the Month before the First Month of the Period of Service being billed (i.e., your Company Bills in Advance) and the Starting Day - which is identified in the Billing Cycle record - is the First day (i.e., '1') of the Month and Year of the Period To Bill chosen in the Auto Billing dialog, therefore the Recurring Revenue is Deferred to the next Month after Sale Date (which in this case is actually the First Month of the Period of Service being billed);

ii.The Auto Billing Sale Date entered is dated on or after the First day of the First Month of the Period of Service being billed, but the Starting Day - which is identified in the Billing Cycle record - is Not the First day (e.g., it is 2...31) of the Month and Year of the Period To Bill identified in the Auto Billing dialog, so the Recurring Revenue for this First Month of the Period of Service being billed will not be fully earned until the next Month, therefore the Earned Recurring Revenue for this First Month is Deferred to the next Month.

c)Earned Revenue is always posted to the General Ledger System  - using the Post Earned Revenue process - on the Last Day of the selected Month being posted, whether that process is run at the end of the Month and Year being posted, or in a subsequent (later) Month.

 

Earned and Deferred Revenue is a somewhat complex concept.

Basically, every Sales Invoice that is issued will normally be considered "earned" when it is created within the context of the every day accounting concepts with which most of us are familiar.

However, in the case of Recurring Revenue, those Sales Invoices are almost never fully "earned" when they are "billed" to the Subscriber.

This is because the Invoices for this Recurring Revenue are created a month (or a least a week or so) in advance of when the next period of service begins.

 

So technically, when the money for those Recurring Revenue Sales Invoices is received before the entire period of service (for which they were Invoiced) has ended:

Those Receipts are deposited (and that income is often spent) before those services have been fully provided.

Therefore (that income) those Receipts, for that period of service time, would be considered unearned.

 

The Deferred Revenue (Daily View) dialog provides a listing in a Grid format of the pending Deferred Revenue records including the associated General Ledger information (those Recurring Revenue Sales Invoices which have yet to be recorded as fully Earned) which may be Printed as a report, and/or Exported to an Excel style Spreadsheet.

There are two ways to access the Deferred Revenue dialog:

a)From the Backstage Menu System Select Reports and Choose Receivable Reports, or

b)From the Quick Access Menu, Select Reports and Choose Receivable Reports.

Then, Select the Deferred Revenue option.

 

HelpFilesDeferredRevenueDialog

Deferred Revenue dialog

 

Using the Deferred Revenue dialog

As Of Date - If the Deferred Revenue Amounts that exist as of Today is not what needs to be listed (e.g., viewed, reported, saved as a PDF file, or exported), use the Drop-Down Calendar/Date Entry field provided to Choose whatever As Of Date is required.

The only restriction is that Sales Invoice and/or Receipt records must have been entered on or before the Date that is selected.

a)Click on the Date field and type the desired Date using a MM/DD/YYYY format; or

b)Use the Drop-Down Calendar/Date Entry field provided to Choose the desired Date

 

Look Up - Accessing the Subscriber and/or the Subscriber Form for any listed Deferred Revenue record.

Click on Deferred Revenue record and select either the Subscriber or Invoice Icon to open and view the associated Subscribers Form.

 

Columns - Select which columns of data are to be displayed:

 

HelpFilesDeferredRevenueDialog-Columns

 

Click the asterisk (¬) at the left of the data grid's Header row (see the mouse pointer in the illustration above) to display a list of all of the column names - and associated data - which may be displayed.

By default, all Column Names will be Checked.

Remove the Check mark (Click on the Check to remove it) to hide that column of data from the data grid.

 

Sort - Setting the Order in which the Deferred Revenue dialog's data grid is Listed within the Deferred Revenue Form (Daily View):

The default sorted order of the Deferred Revenue List is based on the Subscriber (Name) - which is ordered from lowest to highest (1 - 9, a-z, then A - Z).

Thereafter, the column that determines the sorted order of the List may be easily changed, whenever needed.

 

Filter - This list may be filtered, as needed to choose the data that is actually needed

 

Search - Click the Find Icon HelpFilesNavigatorMenu-StandardSearchon the Ribbon Menu at the bottom of then Detail Data Grid to open the Search-Find-Clear dialog (see the Detail Data Grid Ribbon Menu chapter for additional instructions)..

 

HelpFilesDeferredRevenueDialog-Search

 

Output - The data is presented in a Grid format and therefore has all of the normal Grid features and functions such as Sorting, Relocating, and Filtering the data presented before it is Printed as a report, and/or Exported to a file.

a)Chose which columns of data are to be included,

b)Set the order in which they are to be listed, related any columns (if appropriate),

c)Adjust any column's width,

d)Then, when ready:

i.Print - Click the Print Icon at the top of the Form to display the Print Preview dialog.

ii.Export - Click the Export Icon to display Save as... Windows® dialog.

 

See the Accounts Receivable As Of Report chapter for more information using this type of dialog.

See the Grids - Print Preview - Export Data chapter for additional information on using the Deferred Revenue dialog's List View, including its Export & Print options.