If you are using the ScaleXP deferred revenue journal and find that your balance sheet or revenue are not matching as expected, read more here.
ScaleXP's deferred revenue journal page (Journals tab>Deferred Revenue) provides a comparison of both the expected revenue amounts (Section 6: Revenue Recognition) and the expected vs accounting system balance sheet (Section 5: Balance Sheet Reconciliation).
If you find that the amounts in your accounting system are not matching with the amounts calculated by ScaleXP, there are several possible reasons for this.
For the monthly posting flow, see How to review and post the deferred revenue journal to Xero or QuickBooks; account filters and mapping — the most common cause of differences — are covered in How to set up the deferred revenue journal.
- Your opening balance sheets do not match. See How to download invoice line level detail behind the deferred revenue journal
- You have not selected all the relevant P&L and balance sheet accounts in "filter accounts by" when calculating your journal in ScaleXP (it is important to select all the mapped deferred revenue liability accounts as well as their matching P&L accounts here, but not any accrued income asset accounts).
- You have other manual journals impacting these accounts. You can see these in the totals in Section 3: Journals already posted this month. (If ScaleXP is not expecting these journals, it will effectively be telling you to reverse them out.)
- You have un-invoiced revenue in your P&L accounts, resulting in a different revenue figure for the month than what ScaleXP is expecting based on invoices alone. See this article on How to add a manual invoice to adjust ScaleXP revenue recognition to match your accounting system
If you are not using IFRS / GAAP for your journal recommendations, then your suggested journal may also be impacted by back-dated revenue which ScaleXP is assuming you will recognise in prior periods.