No Direct Link Between Invoices and Advance Revenue Accounts: Manually Recording Prepaid Revenue in Qoyod

Here is an explanation of how to record and recognize deferred revenue in Qoyod, where there is no direct option that links the invoice to the deferred revenue account in Qoyod, but you can record the deferred revenue manually.

The Best Method: Issuing an Invoice + Settlement Entry

Steps

1. Issue the invoice as usual

   • From the “Sales” menu > “Sales Invoices” > “Add Invoice“

   • Record all the data

   • Add a note: “Advance Payment – Annual Subscription”

   • Save and issue the invoice

   • Qoyod calculates it as regular revenue directly

2. Add a manual entry for settlement

   • Go to the “Accounting” menu > “Manual Journal Entries”

   • The purpose of the entry: Transfer the revenue from the revenue account to the deferred revenue account added to the chart previously by you.

Details of the Manual Entry (same date as the invoice)

• Debit: Revenue (same account used in the invoice)

• Credit: Deferred Revenue

Example

• Invoice = 1,200 riyal

• Manual entry:

  • Debit: Revenue 1,200

  • Credit: Deferred Revenue 1,200

This way the invoice exists, but the revenue is not considered actual recognition in the financial statements, because it was transferred to deferred revenue.

Monthly Revenue Recognition

Each month you make a manual entry:

• Debit: Deferred Revenue 100

• Credit: Revenue 100