Earn revenue over time (IFRS 15)
Bill once, and recognise the income across the months you deliver it.
Sell a year of support in January and the whole invoice is not income in January. Elvira can defer it and release it month by month.
Setting it up
- Go to Sales → Revenue recognition and open Recognition rules.
- A rule carries the deferred account, how often it releases, the method and the timing.
- Attach the rule to an item, so everything sold as that item defers; or to a single invoice line, so a support plan defers while the hardware beside it does not.
The three methods
- Daily: by the number of days in each period.
- Evenly: the same amount each period.
- Evenly, prorated ends: the same each full period, with the first and last cut to the days actually covered.
If it stops
Delete the schedule and the recognitions are taken back out. Anything that falls in a period you have already closed is reversed by a dated entry rather than by changing the filed period.
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Open Sales → Revenue recognition to see every schedule, what has been earned and what is still deferred.
The register: active schedules, the deferred balance still owed as work, and what has been recognised so far.