How the ScaleXP calculates the suggested deferred revenue journal posting amount

Understand how the suggested deferred revenue journal posting amount is calculated from invoiced revenue, recognized revenue, and journals already posted to Xero or QuickBooks.

Table of Contents

Section 1 - The journal to post Reference sections explaining your journal Related articles

This article explains how ScaleXP calculates the suggested posting amount shown in the deferred revenue journal, so you can understand each section of the report, check the numbers against your accounting system, and post the journal to Xero or QuickBooks with confidence.

The deferred revenue journal is found on the Journals tab (top bar), Step 3 of Revenue Recognition.

Find out more about the detailed backup available, including line level balance sheet movements, in How to download invoice line level detail behind the deferred revenue journal.

Section 1 - The journal to post

In section 1, near the top of the page, you will see a post journal button.

This is the only required section to action; the others are for reference only.

Above the post journal button, you will see a summary of balance sheet and revenue movements. Click on the headings to see further detail by account.

This is the incremental journal after any journals previously posted.
It will only include revenue accounts selected in the Included Data box (top left of report).

Click on the Post journal button to produce a draft journal in Xero or a journal in QuickBooks. This will prompt you to download an Excel file to keep as reference, then type "Confirm" to create the draft journal.

As soon as the accounting system has been updated, you will see a link to the journal so that you can easily review and submit it.
If you have a suggested journal for a locked period in your accounting system, ScaleXP will suggest posting the journal to the earliest subsequent unlocked period. You will be asked to confirm the date to which you wish the journal posted, as shown below.

Reference sections explaining your journal

The rest of the deferred revenue journal page provides detail supporting the journal to post. Here is a summary of what you will fiind:

Section 2 - Comprehensive journal. This shows all expected deferred revenue journals for the months shown, not just incremental amounts still to be posted. As with Section 1, click to reveal further detail by account.

Section 3 - Journals already posted this month. This shows journals already posted, in order to remove them from the suggested journal and avoid double counting. This includes journals posted via ScaleXP as well as all other manual journals impacting the filtered accounts.

For journals posted via ScaleXP, journals posted as late adjustments are shown in the month that matches the revenue recognition, not the month of posting.
This “Journals posted as late adjustments" (Section 3b) is only available for journals posted via ScaleXP.

Section 4 - How the numbers are calculated. This shows the detail behind the proposed journal. Click each row to see detail by account code. To see line item detail, use the detailed monthly download as explained in How to download invoice line level detail behind the deferred revenue journal.

Section 5 - Balance Sheet Reconciliation: ScaleXP vs. Xero or QuickBooks. The ScaleXP amounts here reflect invoices issued but not yet recognized. The values are derived from the invoices loaded into ScaleXP either via your accounting system or via manual upload. This is compared to the balance sheet amount(s) at month end in your accounting system.

Section 6 - Revenue Recognition: ScaleXP v. Xero or QuickBooks. The ScaleXP amounts here reflect the invoices and associated start and end dates seen by ScaleXP. These are derived from the invoices loaded into ScaleXP either via your accounting system or via manual upload. This is compared to the revenue amounts at month end in your accounting system.

Section 7 - Detail by customer. This shows both revenue recognized and the amount sitting on the balance sheet at each month end selected, split by customer. The totals match the ScaleXP amounts in Sections 5 and 6.

How to set up the deferred revenue journal

How to review and post the deferred revenue journal to Xero or QuickBooks

How to adjust the starting balance sheet for deferred revenue

How to set up revenue recognition reporting and automated revenue journals

How to configure and validate revenue recognition in ScaleXP

How to set up revenue recognition journals in ScaleXP

How to download invoice line level detail behind the deferred revenue journal