Sometimes contracts can have invoices raised after service has started or can have multiple invoices created over time.  In this case, based upon their requirements and process, users implement different methods to recognize the associated revenue

  • Raise invoices over time and create catch-up schedules. This method is most commonly used. Users can use the Percent method to create catch-up schedules. Alternately, Flowrev can automatically create catch-up schedules. Users set this up by locking past periods and having their "hard period lock" setting enabled in Flowrev.  Given the correct service dates starting in the past, and this set up, Flowrev will automatically move amounts that would have been recognized in past periods into the first day of the first unlocked accounting period. See this article for details.

  • Raise invoices in the future / over time and create schedules with start date in the past. Flowrev allows the service date to be set in the past.  Typically with this method users either do not lock their accounting periods or do so in a delayed manner.

  • Create future dated invoices in their accounting system upfront, and create the revenue recognition schedule in Flowrev for each. Usually the invoice is sent to the customer at the later date. With this setup, having the invoice line account be a deferred revenue (current liability) account can be useful.

  • Create an unbilled transaction to reflect the future billing and its associated revenue recognition. Raise the invoice(s) in the future per agreements - these invoices will offset and reverse elements of the accrual transaction. See this article for details.