Unearned Revenue
My issue here is reporting—my Balance Sheet would not show Accounts Receivables balance correctly, and My Ageing Summary Report balances are also wrong since it will omit any unmatched Customer Payments which are shown under Unearned Revenue account in Current Liabilities.
For Ageing Summary it becomes difficult. For example, an instant where I have so many customers and a number of them have unmatched credits means I will be showing unreal outstanding balances for customers.
Suggestion:
1. If the Ageing Report would have an option to include the unmatched payments, or;
2. If there was a configuration option to choose, say 'use unearned revenue for customer payments?' If unchecked, this would mean that customer payments would reflect under Accounts Receivables and not Unearned Revenue, and the unmatched Payment would show in any Customer Reports especially the Ageing Reports.
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Shay Rohan
commented
Get rid of the "unearned revenue" account altogether.
It is an un-necessary complication.
Unmatched creditor payments, show them as a debit on the creditor account.
Unmatched debtor payments show them as a credit on the debtor account.
The way it is currently working is a pain.
Shay Rohan
Ireland