Invoices - Ability to recognise future revenue
The ability to recognise future revenue from the invoice.
Purpose: To find out the future revenue, because for some businesses the invoice that they’ve issued to their customer is the revenue for the future month.
Hi all, appreciate the interest and rationale in wanting to be able to recognise revenue of a sale at a date different to that of the invoice or payment date.
While this maybe a function we look to explore in the long-term we want to be upfront that this is not something we'll be developing in the near term. In the meantime it may be best to look into connected apps that can solve for revenue recognition. We'll be sure to let you know if there's any change around this, here.
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Damian Clark commented
This app is working towards being a cost-effective solution for deferred revenue (and also forecasts from the repeating invoices schedules, and more)
Early stages but the roadmap is interesting
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Edward Bird commented
Crazy. we are a Saas business. the model requires accounting treatment which recognises a multi-month or year subscription over time. It wastes hours of my time and my book keeper's time in dealing with the platform's lack of support for this feature, costs my business money as well. I do not recommend your product for any Saas or susbcription business.
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Sami Andreani commented
Hello Xero users, I have found a workaround with the minimum amount of manual steps, using a software called GAccon, let me know if you need help in setting this up
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Jamie Robertson commented
Very disappointing to see this is not even planned let alone in the product.
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Ran Heimann commented
Please help me understand how a SaaS Accounting software does not offer essential accounting tools for SaaS businesses?
Is Xero using Xero for its own accounting? Is this the real reason why there is no annual pricing option for Xero?
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Ben James commented
As noted below - as a saas business that needs to recognize revenue over the contract period we will eventually leave xero just for this issue.
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Jose Francisco Fernandez Aragon commented
I can't believe it's 2023 and you still don't offer this feature. Most tech businesses are SaaS and most of us sell yearly packages. This is a must for all of us.
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Peter Oneppo commented
Without this feature, Xero is basically a non-starter for SaaS companies who don't want to do a ton of manual entries each month.
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Jim Morrish commented
A critical requirement. I'm constantly amazed that Xero doesn't support this. The same applies to phased recognition of costs/ invoices paid in advance.
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Darshi Kasotia, CPA commented
Please develop this feature so that I can use it for a few new clients that I am working with.
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Milan Delaporte commented
Please develop this feature as soon as possible, it is critical for my company
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Andy Mellor commented
If Xero aren't doing this then I suggest peopl have a look at ScaleXP, really good for recurring rev reconciliation etc.
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Michelle Wright commented
As our business grows this is a critical element we need for our reporting, I am surprised reading all the comments this is not even been considered by Xero.
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Guy Shalvi commented
very very helpful as we charge many income in advance invoices
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David Wilson commented
We also run a SaaS business and find the inability to record basic details like subscription start date and end dates very frustrating. Ultimately, we will be looking for the next generation of general ledgers that can cater for a growing software business unless there can be some incremental progress on this topic..
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Jomari Steyn commented
Would it be possible to always have a journal automatically updated, to account for ALL Draft Invoices as:
dt. Deferred Income
cr. Sales (the specific sales account as indicated in the draft invoice)I imagine this being an automated journal that updates as soon as a new invoice is saved to drafts, and also removed from the journal when it is approved.
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Sami Andreani commented
it is that critical that other ventures (like flowrev) are creating it as a layer to add on top of xero, please let us know if you are planning on developing such a feature
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Sam Wilkins commented
being able to recognise the revenue from an invoice over a defined furture period, is requested time and again from our clients and many wont move to xero because this function is lacking. Is this idea actually being considered?
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Jomari Steyn commented
Would it be possible to always have a journal automatically updated, to account for ALL Draft Invoices as:
dt. Deferred Income
cr. Sales (the specific sales account as indicated in the draft invoice)I imagine this being an automated journal that updates as soon as a new invoice is saved to drafts, and also removed from the journal when it is approved.
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Joseph Thuo commented
Critical ,
We are Xero partners and we are losing clients due to lack of this feature