For revenue recognition Flowrev works with items and invoice lines mapped to a REVENUE account or to a CURRENT LIABILITY account.  Before reviewing the below, please reference this article about MAP ACCOUNTS first - we refer to the accounts you map therein, a one time set up step, below. 


For cost recognition Flowrev works with items and bill lines mapped to an EXPENSE account or to a CURRENT ASSET account.


For invoices

  • we recommend assigning items to a REVENUE account in your accounting system.  With this set up, when you create a recognition schedule after specifying item recognition parameters and service dates, Flowrev will generate the proper deferral and subsequent recognition respectively into the mapped deferral accounts (Revenue Deferrals) and then back into the invoice line's assigned revenue account.

  • When items or invoice lines are mapped to a CURRENT LIABILITY account, Flowrev will not need to defer any sales, but will recognize the sales amounts per its schedule based again upon the item parameters set, and the corresponding service dates.  If the invoice line is based upon an Item, then Flowrev will recognize into the item's Sales Account.   If the invoice line is not based upon an item, Flowrev will recognize into the mapped "General sales" account in Map Accounts.

    If you anticipate changes to a transaction such as invoice date change or if you do not know ahead of time when revenue is to be recognized, mapping invoice lines to a deferred revenue (CURRENT LIABILITY) account on the invoice can help reduce the number of changes to your recognition schedules.  Beyond such situations, consider following the recommendation above.


For bills

  • we recommend assigning items to a EXPENSE account in your accounting system.  With this set up, when you create a recognition schedule after specifying item/line recognition parameters and service dates, Flowrev will generate the proper deferral and subsequent recognition respectively into the mapped deferral accounts (Expense Prepayments) and bill line assigned expense account.

  • When items or bill lines are mapped to a CURRENT ASSET account, Flowrev will not need to defer any costs, but will recognize the expense amounts per its schedule based again upon the item/line parameters set, and the corresponding service dates.  If the bill line is based upon an item, then Flowrev will recognize into the item's Purchase Account.   If the bill line is not based upon an item, Flowrev will recognize into the mapped "General Expense" account in Map Accounts.

    If you anticipate changes to a transaction such as bill date change or if you do not know ahead of time when expenses are to be recognized, mapping bill lines to a prepaid expense (CURRENT ASSET) account on the bill can help reduce the number of changes to your recognition schedules.  Beyond such situations, consider following the recommendation above.


 Also, review this article: Does Flowrev support multiple deferral accounts?