Overview
With Fynn, you can easily create deferred revenue (passive accruals / PRAP) for your receivables and automatically release them over time. You can activate this in your settings under “Accounting” > “Postings” > “Deferred Revenue Postings”.How is Deferred Revenue Created?
In Fynn, we create deferred revenue based on the net amount of receivables. Since VAT is due immediately, we do not consider it in the accrual. For each invoice item, if a posting per invoice item is activated, the net amount is evenly distributed over the underlying service period. Amounts relating to the month of invoicing are not deferred.How is Deferred Revenue Released?
The release of deferred revenue also occurs evenly over the service period. The deferred revenue amount is reduced monthly by the corresponding amount. The postings are automatically created and dated in the future. These can be viewed in the posting overview.What Happens When an Invoice is Cancelled?
When an invoice is cancelled, the deferred revenue as well as the invoice posting are automatically released with a reversal posting.Deferred Revenue Posting Keys
If deferred revenue is activated, the posting key40 is used for deferred revenue postings.
This ensures that the input tax deduction is correct.
If a different posting key is desired, define the ledger account “Deferred Revenue” accordingly with <posting key>.<account number>.
Activate Deferred Revenue
Open Settings