Our client has a few cash receipts every month that need revenue deferred until the next month. Would the deferred revenue module be over kill for this? I looked into the module and it mainly deals with schedules so I am not sure if it would be the best solution for them.
Example:
They receive the payment is September for $10K.
DR - Cash
CR - Deferred Revenue
They receive the $10k invoice in October and apply the payment:
DR - Accounts Receivable
CR - Revenue
DR - Deferred Revenue
CR - Accounts Receivable
I was able to create a few work arounds for them but they haven’t been completely happy with them.
The first was that they enter the receipt of cash through the banking module when they import the bank transactions. Then, the next month, they enter the invoice and reverse with a credit memo but change the revenue account when they create the CR. They didn’t care for this because it is not a true representation of what is being done which is paying it.
The other resolution is to create a prepayment in AR in October but change the AR account to Deferred Revenue. Then in the next month, create the invoice and change the AR account to Deferred Revenue. AR never gets hit and the other accounts balance. They don’t like this because it does not hit AR
It would be nice to have some ability to modify the GL before it gets posted so they can do this. Not sure what method is the right to push forward or if anyone else has some ideas.
