This article covers the monthly workflow for the deferred revenue journal: reviewing ScaleXP’s suggested posting, documenting it, and writing it to Xero or QuickBooks.
Important tip: If you are using the journal for the first time, start with How to set up the deferred revenue journal to configure your accounts, mapping, and filters before posting your first journal.
See this video for an overview of how the journal works:
Step 1. Open the deferred revenue journal
The deferred revenue journal is found on the Journals top tab — open the Deferred Revenue page.
From here, you can review the suggested journal for each month and post it to Xero or QuickBooks.
Step 2. Review the suggested journal
Review ScaleXP’s suggested posting for the month, checking it against your expected revenue and balance sheet positions. How the ScaleXP deferred revenue journal calculates the suggested posting amount explains how the figure is built up and what each section of the page shows.
If the balance doesn’t match what you expect, see Why does my deferred revenue balance not reconcile as expected? To adjust revenue or the balance sheet, see How to add a manual invoice to adjust ScaleXP revenue recognition to match your accounting system.
Step 3. Download the journal detail
To document the journal, use the download icon at the top right of the page and choose from the three options.
Download Journal Detail provides the calculations shown on the report plus invoice line level detail behind:
- Invoices issued in the month
- Revenue recognized for the month
- Deferred revenue on the balance sheet at the end of the month
Read more in How to download invoice line level detail behind the deferred revenue journal.
Step 4. Post the journal
Use the Post Journal button at the top of Section 1.
- In QuickBooks, this posts a journal directly
- In Xero, this posts a draft journal which you then approve in Xero
- If the period is locked in your accounting system, ScaleXP automatically suggests posting to the next available open period
Once posted, sync ScaleXP with your accounting system to see the impact — the recommended journal will reduce to nil. Attach the download from Step 3 to the journal in your accounting system to document the detail behind it.
Step 5. Review or change your settings at any time
View or update your deferred revenue journal settings using the three dots at the top right of the page, then Settings. For what each setting does — default accounts, mapping, filters, Tracking Codes or Classes — see How to set up the deferred revenue journal.
Related articles
How to configure and validate revenue recognition in ScaleXP
How to set up the deferred revenue journal
How the ScaleXP deferred revenue journal calculates the suggested posting amount
How to download invoice line level detail behind the deferred revenue journal
Why does my deferred revenue balance not reconcile as expected?
How to adjust the starting balance sheet for deferred revenue
How to automate accrued revenue journal posting, to add and release accrued income