ScaleXP can easily automate your deferred revenue and accrued revenue journals.
For an overview of setting up revenue recognition and related journals, see Getting started with revenue recognition: How to automate revenue recognition and related journals in ScaleXP.
This guide is for teams who have already configured revenue recognition in ScaleXP and walks you through setting up your journals. If revenue is not yet set up, start at How to configure and validate revenue recognition in ScaleXP first.
Note for consolidated companies: revenue recognition journals must be posted at the subsidiary level, in line with the accounting connection.
Step 1. Decide your journal start date
- Pick the date from which ScaleXP will start posting automated journals.
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Two things to consider:
- Pick a date after any financial close that can no longer be reopened — usually your last year-end, but it can sit earlier or later depending on your circumstances.
- Pick a date you can easily document as a starting point, so any audit conversation about the changeover is straightforward.
Step 2. Verify recognized revenue from start date
Automated journals depend on ScaleXP having every invoice with revenue that touches months on or after your start date.
Check your invoice import date
Confirm that the ScaleXP invoice import date is early enough to include every invoice with revenue to be recognized on or after the journal start date, and that the revenue from these invoices is being recognized correctly.
Add anything missing
In some cases it makes sense to upload missing invoices manually instead of changing the import window. Email support@scalexp.com for help uploading other invoices, or see How to add a manual invoice to adjust ScaleXP revenue recognition to match your accounting system .
Validate all revenue recognition from the start date
Before turning on journals, walk through the Revenue Recognition report from your chosen start date forward and confirm the spread looks right for every material customer. See the checklist in Part 2 of How to configure and validate revenue recognition in ScaleXP.
Step 3. Set your revenue journal preferences
Journal preferences live on the Journals top tab — open either the Accrued Revenue or Deferred Revenue page.
Open the Revenue Journal settings
Go to Journals, then select any revenue recognition step.
Use the three dots at the top right of the page to open Revenue Journal Settings. or Settings.
Set default accrued and deferred revenue accounts
Set the default accounts ScaleXP should use for accrued and deferred revenue postings.
If you are using more than one deferred revenue account, open the Deferred Revenue Journal page and configure deferred revenue account mapping per nominal account using the Mapping option as described in Step 5 below.
Include Tracking Codes or Classes, if needed
Tick the option to include Xero Tracking Codes or QuickBooks Classes on journal lines if you want segmentation to carry through to your ledger.
Check other settings
If any settings are locked and you have questions or wish to change them, contact support@scalexp.com for help. For example, if not already set this way for you, you may want to set your revenue recognition preferences to IFRS / US GAAP to avoid back-dated invoicing impacting prior months.
Step 4. Create accrued revenue, if required
If you have services delivered but not yet invoiced at month-end, set up accrued revenue so the income hits the right month and reverses cleanly when the invoice goes out.
Follow How to automate accrued revenue journal posting, to add and release accrued income.
Step 5. Configure and review your first deferred revenue journal
Go to Journals>Journal: Deferred Revenue.
Map your deferred revenue accounts.
If you use more than one deferred revenue account, map between revenue and balance sheet accounts using “Mapping” on the Deferred Revenue Journal page.
Filter your deferred revenue accounts
Select only the accounts you wish to include in the deferred revenue journal.
However you code your invoices, be sure to include both the revenue and balance sheet accounts (deferred revenue or income in advance) - not just revenue accounts.
Review the suggested deferred revenue journal for your first month.
See Deferred revenue journal: how to write deferred revenue journals to Xero or QuickBooks for the posting flow, and How the ScaleXP deferred revenue journal calculates the suggested posting amount for how the suggested figure is built up.
If you ever need to validate the journal against source data, you can download the invoice line detail behind it: How to download invoice line level detail behind the deferred revenue journal.
Step 6. Make a one-time opening balance sheet adjustment
If you have a long history of deferring a high volume of invoices, your starting deferred revenue balance sheet is unlikely to match ScaleXP’s calculated position exactly. Small differences in included revenue, or in how revenue is allocated across days and months, accumulate over time.
Best practice is to make a one-time adjusting entry to bring your opening balance sheet into alignment with ScaleXP. From that point onward, every automated journal is clean and audit-friendly, backed by the line-level downloads from Step 5.
See How to adjust the starting balance sheet for deferred revenue for the mechanics.
You’re done — your revenue journals are automated
That’s it — your accrued and deferred revenue journals are running on automated month-end posting from ScaleXP straight into Xero or QuickBooks.
Use them as-is or extend them with the wider month-end automation:
Related articles
How to configure and validate revenue recognition in ScaleXP
How ScaleXP allocates the spread of revenue and determines deferred revenue amounts
How to set up the deferred revenue journal
How to review and post the deferred revenue journal to Xero or QuickBooks
How the ScaleXP deferred revenue journal calculates the suggested posting amount
How to automate accrued revenue journal posting, to add and release accrued income
How to adjust the starting balance sheet for deferred revenue
How to download invoice line level detail behind the deferred revenue journal