Revenue Recognition Accounting Entries

This entry uses the client-defined A/R GL Code and represents the full amount of the original charge line item, debited entirely from the client-provided A/R GL account code in the period in which the charge was first incurred (the “start date” on the originating invoice line item). Once debited in full from A/R, the charge is never represented on any detailed SmartRec report again from an A/R perspective.

This entry uses the Deferred GL Code and represents the full amount of the original charge line item, credited entirely to the client-provided Deferred GL account code in the period in which the charge was first incurred (the start date on the originating invoice line item).

This entry uses the Deferred GL Code and represents the portion of the originating charge that is to be earned within the given reporting period. Since the full amount of the originating charge was credited to deferred during its originating period, this is the amount for the current reporting period that is to be earned and is therefore debited from the same Deferred GL account.

This entry uses the Deferred GL Code and represents the credit to earned that directly correlates to, and provides the balanced account entry for Debit to Deferred Revenue if the originating charge was deferrable.  For non-deferrable charges, the entire amount of the charge correlates to Debits to Accounts Receivable in its originating month only.