Revenue Deferrals Support
Enable Revenue Deferrals when invoices get created in ZOHO books. Any company that does Accrual Accounting has to revenue deferrals.
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Anonymous commented
This is a critical item for us to recommend this product instead of Zuora for clients managing annual or multi-year subscriptions. In accordance with GAAP, revenue cannot be booked until it is earned. It's acceptable to do this monthly, so all but the first month's worth of subscription is booked to a current liability account called deferred revenue. Each month, revenue is credited and deferred revenue is debited based upon the pro-rata amount of the subscription. (monthly=total amount / term in months)
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David commented
It is BASIC for a recurring subscription software to enable its users using accrual accounting to periodify correctly their revenues in their acocunts !
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Arnaud commented
Totally agree with Brian, the revenue generated by an Invoice in Zoho Susbcriptions should be automatically periodified in Zoho Books (which means the same as classifying as Deferred revenue the revenue corresponding to a future period). This is really ESSENTIAL for any subscription business who wants to have a clearer view of its real erevnues over a given period, and who wants to have accoounts refelecting better the true state of the business.
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Brian Euclide commented
This is critical to the complete concept of a subscription. The use of deferred revenue and then realizing the actual revenue over the life of the subscription is ESSENTIAL! I would be happy with a simple report that identified to me by product per month to be realized. Without this simple element, this product is USELESS.
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Brian Euclide commented
I can't believe that there are not more people pushing for this issue! In my opinion, this is a critical gap in the product. The absence of the ability to spread the subscription out over the life of the subscription to revenue from deferred revenue is a major problem. We can associate the subscription to deferred revenue, but we are left to make the manual entry in books for each month.