Unearned Revenue and Prepaid Packages

rrothman · ‎July 30, 2020

I work for a therapist who sells prepaid packages. Her clients buy a package and a certain number of sessions/hours.

I need to be able to track each client's package. As far as billing, I need to be able to track how much money each client has, so it is easy to know when they need to purchase more on their package. I would love to be able to do this on the customer page so I get an easy visual of how much money each person has in their account. I believe because this is prepaid it needs to go to an unearned revenue liability account. How can I go about doing this?

wendywilliscpb · ‎July 30, 2020

I usually make a Customer Deposits liability account for each of the customers so that we can run reports from that account showing what they paid up front and what their balances are. This way the unearned revenue is ready to report at year end, and you can run a custom report, then just change your selection of the customer if someone is asking for their printed balance. You will also need an item for their specific Customer Deposit Account with each client name in order for this to work. When they make a prepayment you would make an item and a liability account just for that customer. As you invoice them, you can subtract the amount from their Customer Deposit Account with the same item.

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Unearned Revenue and Prepaid Packages

Unearned Revenue and Prepaid Packages

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