Yannick Tivisse
117 lines
4.2 KiB
ReStructuredText
117 lines
4.2 KiB
ReStructuredText
========================================
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Deferred revenues: how to automate them?
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========================================
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Deferred/unearned revenue is an advance payment recorded on the
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recipient's balance sheet as a liability account until either the
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services have been rendered or the products have been delivered.
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Deferred revenue is a liability account because it refers to revenue
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that has not yet been earned, but represents products or services that
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are owed to the customer. As the products or services are delivered over
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time, the revenue is recognized and posted on the income statement.
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For example: let's say you sell a 2 year support contract for $24,000
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that begins next month for a period of 24 months. Once you validate the
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customer invoice, the $24.000 should be posted into a deferred revenues
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account. This is because the $24,000 you received has not yet been
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earned.
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Over the next 24 months, you will be reducing the deferred revenues
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account by $1,000 ($24,000/24) on a monthly basis and recognizing that
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amount as revenue.
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Configuration
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=============
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Module installation
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-------------------
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In order to automate deferred revenues, go to the settings menu under the application
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:menuselection:`Accounting --> Configuration` and activate the
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**Assets management & revenue recognition** option. This will install the
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**Revenue Recognition Management** module.
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.. note::
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In some version of Odoo 9, besides checking this option, you need to install
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the "Revenue Recognition Management" module. If you are using Odoo 9, you
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might check if the module is correctly installed.
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Define deferred revenue types
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-----------------------------
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Once the module is installed, you need to create deferred revenue types.
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From the Accounting application, go to the menu :menuselection:`Configuration --> Deferred
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Revenues Types`.
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.. figure:: ./media/deffered01.png
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:figclass: figure
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:align: center
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Example: 12 months maintenance contract
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Some example of deferred revenues types:
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- 1 year service contract
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- 3 years service contracts
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Set deferred revenues on products
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---------------------------------
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Once deferred revenues types are defined, you can set them on the
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related products. On the product form, in the Accounting tab, you can
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set a deferred revenue type.
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Here are some examples of products and their related deferred revenue
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types:
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+---------------------------------+-----------------------------+
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| Product | Deferred Revenue Type |
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+=================================+=============================+
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| Support Contract: 3 years | 3 years service contracts |
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+---------------------------------+-----------------------------+
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| Netflix subscription: 3 years | 3 years service contracts |
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+---------------------------------+-----------------------------+
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| Flowers every month | 1 year product contract |
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+---------------------------------+-----------------------------+
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Sell and invoice products
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=========================
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Once the products are configured, you can create a customer invoice
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using this product. Once the customer invoice is validated, Odoo will
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automatically create a deferred revenue for you, and the related journal
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entry.
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+----------------------------+----------+----------+
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| **Account** | **Dr** | **Cr** |
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+============================+==========+==========+
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| Accounts receivable | 24000 | |
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+----------------------------+----------+----------+
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| Deferred revenue account | | 24000 |
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+----------------------------+----------+----------+
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Then, every month, Odoo will post a journal entry for the revenue
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recognition.
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+----------------------------+----------+----------+
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| **Account** | **Dr** | **Cr** |
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+============================+==========+==========+
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| Deferred revenue account | 1000 | |
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+----------------------------+----------+----------+
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| Service revenue account | | 1000 |
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+----------------------------+----------+----------+
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Reporting
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=========
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To analyze all your current contracts having a deferred revenue, you can
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use the menu Reporting > Deferred Revenue Analysis.
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.. image:: ./media/deffered02.png
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:align: center
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.. seealso::
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* :doc:`overview`
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