Releasing takes accrued revenue off the balance sheet once an invoice replaces it. Releases for accrued invoices are automatic. You only release manual accrued revenue yourself, either in one month or spread over several.

1. Open the Release Accrued Revenue page

Open the Release step from the Journals tab or the Continue button. The page is called Release Accrued Revenue.

You only need to use this page to release manual accrued revenue; releases for invoices are automatic.

• When a draft invoice you accrued is issued, or an issued invoice was accrued, ScaleXP matches it and releases the accrual on the issue date - no action is needed. 
• Manual accrued revenue is the exception: release it yourself when the invoice is issued, or write it off.   

This page shows both revenue and balance sheet for each month end as follows: 

• black is revenue - the accrued revenue movement in the month;
• blue is the accrued revenue balance as shown on the balance sheet at month end. 

The summary table shows the Accrued revenue total, Accrued revenue added (expand it to see the split by revenue account) and Accrued revenue released for each month.

2. Review the system checks

The banner at the top flags manual accrued revenue entries that have been outstanding long enough to check.

1. Click View items to expand the check. For each entry ScaleXP shows the customer, the amount, when it was added and how long it has been waiting with no invoice.
2. Find the customer in the list below - the row carries a Needs review chip showing the age of the entry - and either release it against its invoice or write it off, as described in section 3.

3. Review the automatic releases

Automatic releases need no action from you - they are shown so you can confirm the movement before you post.

Review as follows:

1. Expand a customer to see each invoice or manual entry beneath it.
2. Read each cell as a pair: the black figure is the revenue recognized in that month, and the blue figure is what is still on the balance sheet at the end of the month. For example, an invoice showing −2,000 in black and 1,000 in blue for August means 2,000 of accrued revenue was released in August, with 1,000 still accrued at month end.
3. Use the pencil icon on an invoice to check its dates, or remove to take it out of accrued revenue.

4. Release or write off manual accrued revenue

1. Expand the customer and find the manual entry (by default, its reference starts with AC-).
2. Click Release Accrued Revenue, edit the Description if desired, then set the Release Date / Start Date and Release End Date. To release in a single month, set both to the issue date of the invoice that replaces the accrual. Click Save & Release Accrued Revenue to confirm the release.
3. To write the accrual off instead, click the bin icon. This removes the accrued revenue so no separate release is needed - if it has already been journaled, ScaleXP suggests the reversal.
4. To edit the entry, click the pencil icon.

5. Extend the release over several months

A release does not have to happen in one month. Spread it over several months to recognize revenue straight-line across a contract, for example to spread the value of a free month across the months that are invoiced.

1. On the manual entry (reference starting AC-), click Release Accrued Revenue.
2. Set the Release Date / Start Date to the first month of the release.
3. Set the Release End Date to the last month of the release.
4. Click Save & Release Accrued Revenue. ScaleXP releases the balance evenly across the months in between, and the accrued income balance falls to zero by the end date.

Example: a 12-month contract has one free month, then 11 months invoiced at $1,200. Add accrued revenue of $1,100 in month 1, then release it from month 2 to month 12. ScaleXP releases $100 a month, so every month shows $1,100 of revenue.

For annual uplifts and $0 extensions, see the "Which approach?" table in Revenue recognition for multi-year contracts, free periods, and extensions. For the release rules and the effect on MRR, ARR and IFRS reporting, see How to release accrued revenue.

When you have finished, click Continue to Post Journal →.