more-arw search

Q&A Forum

Deferred Revenue Entry

Hi! I am trying to figure out the best way to record an entry for the following scenario.

I have a 12 month subscription that started in January but I did not bill out the full 12 month bill until May. Not our usual process but it was missed.

I am trying to find a way to book this as deferred revenue over the 12 month subscription period, without having to mess with my AR entries for May.


Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

May entries:
Dr AR 1200
Cr Deferred Rev 1200
That is for the bill you raised in May.
Then recognize that 5 months have been earned
Dr Deferred Rev 500
Cr Revenue 500
Then chase your customer to bring their payments up to date:)

In June, July etc
Dr Deferred Rev 100
Cr Revenue 100

I assume the amounts are not material

(Asst Controller) |

Thank you! That totally makes sense. Not sure why i was making it more difficult than it needed to be.


Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.