Deferred revenue rolled forward and recognized on schedule
Deferred revenue schedules break down when billings, contract changes, and recognition terms sit in different systems and get pieced together by hand. Each month, the Accounting Agent pulls billing and contract data, rolls the balance forward, and drafts the recognition entry.
What the Accounting Agent prepares
- A deferred revenue roll-forward: opening balance, new billings, revenue recognized, closing balance
- A recognition schedule by contract or invoice, using the terms your team defines
- A drafted monthly recognition entry by revenue account and entity
- The closing balance tied to the deferred revenue GL account, with differences flagged
- A waterfall of revenue still to be recognized in future periods
How it works
- Pull the data. The Accounting Agent pulls invoices, contract terms, and deferred revenue balances from your ERP and billing system.
- Prepare the work in your logic and format. It applies your recognition terms, rolls the schedule forward with live formulas, and calculates the period's revenue.
- Review and approve. You review the schedule and the entry, then approve. The recognition entry posts to your ERP after your approval.
What stays in your control
- Recognition terms and policy decisions stay with your team
- The recognition entry posts only after a reviewer approves it
- Every recognized amount traces to the invoice and contract behind it
Standard note
Under ASC 606 and IFRS 15, revenue is recognized as performance obligations are satisfied, and amounts billed or collected before that point are carried as deferred revenue (a contract liability).
FAQ
What is a deferred revenue schedule?
It tracks amounts billed or collected before revenue is earned and shows when each amount moves from the balance sheet into revenue.
Can it handle non-standard recognition terms?
Yes. You describe the rule, for example a ratable term that starts mid-month, and the Accounting Agent writes code to apply it the same way each period.
How is this different from a revenue recognition working paper?
The deferred revenue schedule tracks the balance and its release over time. Allocating contract value across multiple performance obligations is covered on the revenue recognition page.
