Getting started with revenue recognition: How to automate revenue recognition and related journals in ScaleXP

Setting up your first deferred revenue and accrued revenue journals using ScaleXP automations

Table of Contents

Step 1: Configure and validate your revenue recognition Step 2: Set up your revenue recognition journals You’re done — your revenue recognition is automated Related articles

This article provides an overview of steps to take when first setting up revenue recognition journals in ScaleXP and walks you through from configuring how revenue is allocated to posting your first automated month end accrued and deferred revenue journals.

Step 1: Configure and validate your revenue recognition

Start by teaching ScaleXP how to allocate revenue across periods — through its built-in text-recognition AI, account-level rules, multi-tiered rules, or usage-based rules — and then review the results in the Customers tab using the Revenue Recognition, MRR, ARR, and IFRS/GAAP view types. Read more about how to do this in How to configure and validate revenue recognition in ScaleXP.

Step 2: Set up your revenue recognition journals

Once your revenue allocation is reliable, set up the automated journals that post to Xero or QuickBooks. This step covers picking a journal start date, confirming you have enough historical invoice data loaded, setting your journal preferences, and setting up your starting balance sheet position. It also includes posting accrued revenue for un-invoiced services, and reviewing your first deferred revenue journal.

Follow the full walkthrough here: How to set up revenue recognition journals in ScaleXP

For ongoing month-end mechanics and tracking, see How to use ScaleXP for month end journals

You’re done — your revenue recognition is automated

Once Steps 1 and 2 are in place, your customer revenue reports, MRR and ARR metrics, churn analysis, and month-end revenue journals all run from the same automated foundation. Use them as-is or customize them to your needs: