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I would extend this to the same functionality but for deferred revenues that have to be spread over a period - critical for subscription-based businesses.

This should be a dead cert for Xero to add as it is a manual process that literally every accounting team have to process manually once a month.

Next month this idea I believe will be 10years. This has now become so critical for us we're looking to move off of Xero.

Not even being able to record dates on invoice/transaction lines means we can't even attempt to do this manually outside of Xero.

Prepayment function should also be available on Xero where at the time of creating purchase invoice, a prepayment tickbox can be selected and user will be prompted to enter the prepayment period. Xero shall automatically reverse the expense on the period where the client paid in advance and amortize the expense over the period selected. This will avoid omission of necesary prepayment entries at monthend.

This should be very simple - SAGE offer it as standard. Really frustrating having to do journals every month :-(

Adding prepayment functionality (similar to depreciation or Scheduled journals) into Invoices and Bills would save so much time at the month end - when enterinf bill or invoice, it would be great if you could define expense dates from / to and xero would split the costs automatically over this period. Balancing entry would then go to Prepayments or Advance / Deferred income accounts. In ideal situation, there should also be report that shows prepayments / deferred income schedule with items line by line and total costs / income to be recorded each month.

Prepayments lead schedule - similar to Fixed assets Register, could be used for deferred income, accruals schedule too.

If Xero could help to automate the prepayments process this would stop errors and omissions and save a lot of time

Absolutely agree. If you could achieve this, it would be a game changer! To be able to spread revenue invoiced over future months would be the number one Xero improvement for me. I think this is one change that would impact directly on your market share.

Every creative, digital and marketing agency in the world, as well as most professional service firms that take deposits need this to comply with accounting standards easily.

And - it's not a complicated feature.

Critical for SaaS business using Xero.

It would be good if this was automated and let Xero deal with the rounding rather than having to manually calculate the monthly prepayment amount and then post a manual journal as well as set up a recurring journal to sort it all out.

Just post the invoice straight into Prepayments (or mark it when you post it) and then go to a Prepayments section to tell Xero when you want the prepayment to start and over how long and it does the rest.

This would save a lot of time to create them manually!

As a SaaS business this is sorely needed for our company, especially as we transact in multiple currencies too. At the moment we have to keep a spreadsheet and post journals manually.

Think this is really needed! Would save so much time rather than creating manual journals

My Board Chair wants to see revenue recognised monthly not the whole invoice. Crazy that you don't make this possible.

If this could work similar to the fixed asset register run depreciation function this would help so much!

Need, need, need this! We're a wedding DJ company and clients are booking a year in advance and paying a 50% retainer upfront. We need to be able to display the full invoice, capture the retainer as current revenue, and have the remainder recognized as "deferred revenue" until the date they pay that balance.

Ability to automate prepayment and accrual schedule.

Purpose: To reduce manual work that’s usually done through excel