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Apples521
June 4, 2025
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Deferred Revenue Dating

  • June 4, 2025
  • 1 reply
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I am on accrual basis. I invoiced a client $1,500 on 4/20 for 50% deposit which I coded to deferred revenue.  I received that $1,500 payment on 4/21, so that invoice is paid in full and is showing up as a deferred revenue liablitly as I should expect.  I provided that service on 6/4- when I make my journal entry to recognize that by 

Dr- Deferred Revenue
Cr- Income

Do I record that journal date on 6/4 since that's whenI actually provided the service?  And then I can create a new invoice to income on 6/4 for the second half?  Do I have that right?

Best answer by RhoiceW

Hi there, Apples.

 

Yes, you are correct in your understanding of how to handle the deferred revenue and income recognition. Since you provided the service on 6/4, you should record the journal entry to recognize the revenue on that date by debiting deferred revenue and crediting income. 

 

As for the second half of the payment, you can indeed create a new invoice on 6/4 to record the additional income.

 

You may find it helpful to read this article about revenue recognition, which provides guidance on recording payments for products or services that will be delivered in the future and recognizing the revenue gradually over time.

 

Consider upgrading to QuickBooks Online Advanced, where you can set up automatic schedule for a product or service to help with revenue recognition.

 

After creating your journal entry, you can revers or delete it incase you there are incorrect information entered.

 

If you have further concerns you can always click the Reply button.

1 reply

R
RhoiceWAnswer
June 4, 2025

Hi there, Apples.

 

Yes, you are correct in your understanding of how to handle the deferred revenue and income recognition. Since you provided the service on 6/4, you should record the journal entry to recognize the revenue on that date by debiting deferred revenue and crediting income. 

 

As for the second half of the payment, you can indeed create a new invoice on 6/4 to record the additional income.

 

You may find it helpful to read this article about revenue recognition, which provides guidance on recording payments for products or services that will be delivered in the future and recognizing the revenue gradually over time.

 

Consider upgrading to QuickBooks Online Advanced, where you can set up automatic schedule for a product or service to help with revenue recognition.

 

After creating your journal entry, you can revers or delete it incase you there are incorrect information entered.

 

If you have further concerns you can always click the Reply button.

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