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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Chorus Executive Finance commented
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.
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Luke Aikman commented
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.
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Thomas Dupuy commented
Critical for SaaS business using Xero.
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Paul Woodward commented
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.
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Ka Hang Teh commented
This would save a lot of time to create them manually!
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Pippa Goodall commented
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.
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Danielle White commented
Think this is really needed! Would save so much time rather than creating manual journals
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Edward Bird commented
My Board Chair wants to see revenue recognised monthly not the whole invoice. Crazy that you don't make this possible.
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Christopher Isham commented
If this could work similar to the fixed asset register run depreciation function this would help so much!
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Ayanda Mngoma commented
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.
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AdminXero Team (Admin, Xero) commented
Ability to automate prepayment and accrual schedule.
Purpose: To reduce manual work that’s usually done through excel