You can let the software automatically create deferred revenue entries for your memberships and events by enabling the option in your accounting settings (Settings > Accounting > Deferred Revenue / Prepaid Expenses > Deferred Revenue Automation).
To learn more about deferred revenue and prepaid expenses, see this article: Recording Prepaid Expenses / Deferred Revenue
How does it work?
Deferred revenue entries are created automatically from a form when a transaction covers a period that extends into the next accounting period. The deferred portion is calculated based on several factors:
- The date of the accrual entry
- Your accounting period end date
- Membership pricing and plans (date-to-date or X-month period)
- Your event dates (if specified)
How do you review automatically generated deferred revenue entries?
Go to "Deferred Revenue Management" from Accounting > Book Entry > Your Advanced Operations to:
- View your deferred revenue entries by accounting period
- Edit amounts as needed
- Delete any entries that don't apply
Practical example:
The Arts on Stage Cultural Association collects membership dues in December 2024 for the year 2025. The system will automatically create a 100% deferred revenue entry, since the entire membership period falls within the next accounting period!
Note: at this time, this option is only available for deferred revenue. Support for prepaid expenses will be added in a future update.
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