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M
malo21
March 29, 2022
Question

Deferred Revenue

  • March 29, 2022
  • 16 replies
  • 128 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!

16 replies

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?

H
heatherthebookkeeper
November 21, 2022

You’re always welcome, @heatherthebookkeeper.

 

I’m glad to know that the information and guidelines outlined by my colleague give you a better option to record the advance payment in QuickBooks Online (QBO).

 

Rest assured, every concern raised on the Community page will receive the proper attention. Having said that, feel free to ask any other questions you may have regarding QuickBooks here.

 

I wish you success in your business. Enjoy your amazing day!


Just to clarify, I do not use QBO. I am using Enterprise 2022 but, I have been using QB since it first came out in the 90's so, I knew where to go by following the steps provided. 

If anyone else reading these steps needs to follow along in the desktop version I can offer these alternative steps:

Step 1 - From the Lists tab - select Lists, chart of accounts, new, account type=other current liabilities, name it (deposits; retainage, etc.), add a description if you choose, click save & close (mine is 2230 unearned income - deposits)

Step 2 - From the lists tab -select items, add new, service , name it (deposits/retainage, etc.), from the income drop down choose the account you set up in step 1

Step 4 - Option 1 - choose the customer, from new transactions choose sales receipt, for the item you choose the one you set up in step 2 (deposit/retainage), enter the dollar amount, save and close.

Step 5 - choose the customer, from new transactions choose create invoice, enter the items that were sold, on the last line of the invoice choose the item you set up in step 2 (deposit/retainage), enter the dollar amount as a negative, save and close.

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