| Availability |
Odoo Online
Odoo.sh
On Premise
|
| Odoo Apps Dependencies |
•
Invoicing (account)
• Accounting (account_accountant) • Discuss (mail) |
| Lines of code | 509 |
| Technical Name |
deferred_revenues_recognition |
| License | OPL-1 |
| Website | https://www.axiomworld.net |
| Versions | 14.0 13.0 15.0 11.0 12.0 |
Deferred Revenue Recognition
Deferred Revenue Recognition
This module enables you to recognize all Deferred Revenues without the hassle of doing all the related entries.
Description
Description
Deferred income is the income received for goods or services which has not yet been earned. According to the revenue recognition principles, it is recorded as a liability until delivery is made, at which time it is converted into revenue. Deferred revenue is recognized as a liability on the balance sheet of a company that receives an advance payment. This is because it has an obligation to the customer in the form of the products or services owed. So essentially these are prepayments from customers for which a company is required to show as a liability in their books initially.
This means there are many journal entries involved in order to make sure that the financial statements give a true and fair view as shown.
When cash is received
| Description | Debit | Credit |
|---|---|---|
| Cash/Bank | XXX | |
| Deferred Revenue | XXX |
Upon Recognizing the revenue this entry is passed
| Description | Debit | Credit |
|---|---|---|
| Deferred Revenue | XXX | |
| Revenue | XXX |
In case if there is a Current part and a Non-Current part
| Description | Debit | Credit |
|---|---|---|
| Cash/Bank | XXX | |
| Deferred Revenue | XXX | |
| Non-Current Deferred Revenue | XXX |
In case of a partial Refund upon recognition
| Description | Debit | Credit |
|---|---|---|
| Deferred Revenue | XXX | |
| Revenue | XXX | |
| Cash | XXX |
In case if thereâs additional receivable created upon recognition
| Description | Debit | Credit |
|---|---|---|
| Deferred Revenue | XXX | |
| Receivable | XXX | |
| Revenue | XXX |
Standout Features
Standout Features
- Recognizes deferred revenues automatically
- Reduce the number of entries
- Generates report for the deferred revenue transactions.
Exploring the module: (How to)
Exploring the module: (How to)
- Download and install the module.
- Go to the Invoicing/Accounting app
- The module adds following menus to the invoicing menu
Configuring Deferred Revenue Types
- Invoicing -> Configuration > Management > Deferred Revenue Types
- Create revenue recognition type
- Select the GL account to debit and credit at time of recognition and
- Select period and
- frequency of entries.
Customer Invoice Creation
- Create Customer Invoice, select Deferred Revenue Type and Validate the invoice
Journal Entry Of Deferred Revenue
- The following Journal Entry is generated.
Revenue Recognition Board
- In Invoicing > Management > Deferred Revenue menu based on Customer Invoice and recognition criteria; recognition board will be generated in Draft state.
- After clicking Confirm button state of board will be changed to Running and buttons for journal entry will be generated on the board
Revenue Recognition
- On clicking journal entry button available against required date, module will automatically generate journal entry in Draft state for review and entry can be viewed by clicking Items button.
- The following journal entry is generated by the module and by clicking Post entry it will be posted in GL.
Reporting
- In Invoicing > Accounting > Management > Deferred Revenue menu reporting will be available in Graphs and Pivot Form.
- The following journal entry is generated by the module and by clicking Post entry it will be posted in GL.
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Odoo Proprietary License v1.0 This software and associated files (the "Software") may only be used (executed, modified, executed after modifications) if you have purchased a valid license from the authors, typically via Odoo Apps, or if you have received a written agreement from the authors of the Software (see the COPYRIGHT file). You may develop Odoo modules that use the Software as a library (typically by depending on it, importing it and using its resources), but without copying any source code or material from the Software. You may distribute those modules under the license of your choice, provided that this license is compatible with the terms of the Odoo Proprietary License (For example: LGPL, MIT, or proprietary licenses similar to this one). It is forbidden to publish, distribute, sublicense, or sell copies of the Software or modified copies of the Software. The above copyright notice and this permission notice must be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
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