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Client prepaids of a SaaS product

Company creates a membership program (“MP”) that is accounted for as SaaS when activated by a user.

Company often sells these MP’s in bulk to clients who use the MP as incentives to an end user individual. The MP services do not begin until the MP is activated.

We account for these pre-sold un-activated as a Liability – call it “Un-activated MP”.

When the end user individual activates the MP, we account for this by Debiting the “Un-activated MP” account and crediting either a deferred revenue or revenue account based on the term of the MP.

We are currently using JE’s  to account for the financial transaction but would like to be able to generate a report similar to an inventory report that shows quantity and amount of a periods transactions. Right now we track quantity by spreadsheet.

Looking for a solution to do this in QBO.

1 Comment
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Anonymous
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Client prepaids of a SaaS product

Hey @bmz2016,

 

You can generate a Journal Report that will show all of your JE's for a given time period. Type in"journal" and it should appear in the results:

 

JE 1.PNG

 

 

 

 

JE 2.PNG

 

 

From here, you can customize the report and set whatever criteria you need. Out of curiosity, what drove the decision to use Journal Entries? My thought was you could use recurring invoices to bill the customer and shut it off once they are unsubscribed. 

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