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M
malo21
March 29, 2022
Question

Deferred Revenue

  • March 29, 2022
  • 1 reply
  • 54 views

My company provides event-driven marketing services to companies. We invoice all the companies at the time of sale, but the marketing event occurs at a later date. Is there a way to 'map' the invoices so that when posted the debit goes to deferred revenue, rather than revenue? Right now I have to JE each invoice when entered, and then reverse each JE when the events occur and the revenue is earned..

(note: we do accrual accounting)

Thanks!

1 reply

S
ShiellaGraceA
Level 9
March 29, 2022

Welcome to Community, @malo21.

 

I'll share some insight about mapping customer invoices. QuickBooks record invoices to income and accounts receivable (A/R) by default. Thus, mapping them to deferred revenue is un-available. You'll have to record a journal entry.

 

I recommend consulting an accountant for best way to handle deferred revenue. You can visit our site to find an accountant near you: Find a ProAdvisor.

 

Here are some additional resources that'll help you manage customer-related tasks.

 

 

Feel free reply to this thread if you have follow-up questions or concerns about mapping invoices. I'm more than willing to assist you. Take care and have a great day ahead.

M
malo21Author
April 7, 2022

Is there any version of QB that allows for an invoice to be mapped to deferred revenue rather than reveune?

S
SHUyeno
November 15, 2022

@malo21 

 

You're spot on.  I'm not sure why @Kevin_C  and @ShiellaGraceA are telling you that you can't map an invoice item to a deferred revenue account.  All you need to do is set up item(s) mapped to a deferred revenue liability account and send it to your customer.  That debits A/R and credits deferred revenue.  Then, when the customer pays the invoice it debits your bank account and credits A/R.  At this point, you still have the credit balance in deferred revenue that you need to move to income.  After the marketing event, create a journal entry and debit deferred revenue and credit the appropriate income account and you're good to go.


Thank you for writing this because I didn't want to have to write it all out but felt obligated to after I figure this out myself! This is exactly what I did and it seems to be working well. Nice to hear others finding similar solutions that are working. 

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