How should I code my invoices? (to revenue or balance sheet)

Learn whether to code invoices as revenue or on the balance sheet

Written By ScaleXP Customer Success (Super Administrator)

Updated at July 17th, 2025

There is no wrong answer. You can code to revenue or the balance sheet. There are considerations for both options. If you code to revenue, ScaleXP will know to journal the revenue to your default balance sheet account. On a monthly basis, you will write your journals to push a portion of the revenue to the balance sheet and then pull down from the balance sheet every month. If you code to the balance sheet, and you need the revenue to end in multiple revenue accounts, you will need to have 1 balance sheet account per destination revenue account. This is to ensure that ScaleXP will know where the revenue from each balance sheet will ultimately be journaled to. ScaleXP journals will suggest drawing from the balance sheet every month. 

 

See Deferred Revenue Journal: How to write deferred revenue journals to Xero or QuickBooks for more help on this topic