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.