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  1. Invoices - Ability to recognise future revenue

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    63 comments  ·  For small businesses » Business features  ·  Admin →
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    Not in pipeline  ·  AdminKelly Munro (Community Manager, Xero) responded

    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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    Richard Carman commented  · 

    I'm pretty sure many businesses, like us, invoice some or all of their clients on an annual basis for services delivered across that year. In that case, we post the income from those invoices to an 'Income in Advance' account and then set up a monthly repeating journal to allocate 1/12th of that revenue from the 'Income in Advance' account to the correct P&L income account.

    This is a slow and cumbersome process that is prone to human error. For instance, when a client leaves, we have to delete their annual repeating invoice and remember to delete their corresponding monthly repeating journal. However, if these two were linked together, it would be a much simpler process and less prone to human error.

    Richard Carman supported this idea  ·