See this video for a quick overview of how the deferred revenue journal works:

The deferred revenue journal is found on the Journals tab (top bar), Step 3 of Revenue Recognition.

Read more about setting this up in Deferred Revenue Journal: How to write deferred revenue journals to Xero or QuickBooks 

How the deferred revenue journal is calculated

Section 1 - suggested journal and post journal button

Section 1 shows your Suggested Journal(s).  It will only include revenue accounts selected in the Filter accounts by box (top left of report).  These journals are calculated as follows:

1. Move all revenue to the balance sheet.   For all revenue accounts selected in the filter (top left), revenue invoiced to those revenue accounts in the month is moved to your selected deferred revenue balance sheet account.  This is shown in Section 3.
2. Add recognised revenue earned in the month.  This is shown in Section 4c. This is total revenue recognised by ScaleXP (Section 4a) less any revenue already recognised via an accrual journal in ScaleXP (Section 4b).  Detail on the revenue recognised by ScaleXP is found in Section 8; you can read more about this section below.
3. Subtract any journals already in the accounting system. This is shown in Section 5.

Click on the Post journal button in Section 1 to produce a draft journal in Xero or a journal in QuickBooks.  This will prompt you to download an Excel file to keep as reference, then type "Confirm" to create the draft journal. 

• As soon as the accounting system has been updated, you will see a link to the journal so that you can easily review and submit it.
• If you have a suggested journal for a locked period in your accounting system, ScaleXP will suggest posting the journal to the earliest subsequent unlocked period. You will be asked to confirm the date to which you wish the journal posted, as shown below.

Section 2 - invoiced revenue (P&L only)

Section 2 shows invoices coded directly to revenue, by issue month. This shows all invoices coded directly, in your accounting system, to the account(s) in the filter, totalled by the month the invoice was issued.

• This information is used to calculate the deferred revenue journal as per Section 3 below.
• When more than one revenue account has been selected, you can see the detail split by revenue account by clicking on the chevon to the right of the report heading.

Section 3 - invoiced revenue deferred (always equals Section 2)

Section 3 shows deferral of invoices coded directly to the P&L. Only accounts included in the filter are shown. This section forms part of the journal calculation in Section 1.

Section 4 - revenue recognised

Section 4c shows revenue recognised from the balance sheet. This is based on total revenue recognised in 4a, which is based on your selected journal methodology.

• Section 4a shows all revenue recognised by month, as calculated by ScaleXP. This is based on invoices in your accounting system and other revenue you have added into ScaleXP.
• Section 4b shows accrued revenue in ScaleXP.
• Section 4c shows deferred revenue based on 4a less 4b. This forms part of the journal calculation in Section 1.

Section 5 - journals already posted

Section 5 shows journals already posted. in order to remove them from the suggestd journal, to avoid double counting. This includes journals posted via ScaleXP as well as all other manual journals impacting the filtered accounts.

• For journals posted via ScaleXP, journals posted as late adjustments are shown in the month that matches the revenue recognition, not the month of posting. This adjustment is only available for journals posted via ScaleXP.

Section 6 - balance sheet comparison(for reference)

Section 6 shows balance sheet liability accounts.

• Section 6a shows deferred revenue as calculated by ScaleXP based on invoices in your accounting system that have an issue date on or prior to the balance sheet month and are included in your filter.
• Section 6b shows deferred revenue as currently in your accounting system. Note that this may include revenue from revenue accounts not included in your filter. If you have more than one deferred revenue balance sheet account, click on the arrows to see detail by account.

Section 7 - revenue comparison (for reference)

Section 7 shows recognised revenue for the filtered accounts. If you have filtered for more than one account, click on the arrows to see detail by account code.

• Section 7a shows recognised revenue as calculated by ScaleXP.
• Section 7b shows the revenue currently in your accounting system.

Section 8 - customer detail (for reference)

Section 8 shows detail of revenue recognition by customer. This shows the detail of recognised revenue as calculated by ScaleXP. You can see detail by invoice by clicking on the arrows next to the customer name. Use the download arrow (top right) to download this detail, as shown on the screen. If you require more detail, use the line level download available as part of the revenue recognition reports.

This also shows the ending deferred revenue balance sheet by customer, in the final column.