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

Keywords for inquiry:

• How do I record deferred revenue in the system?

• I have an annual subscription invoice, how do I record the revenue monthly?

• Can I link the invoice directly to the deferred revenue account?

• Why is the revenue calculated at once even though it’s an annual subscription?

• How do I make a settlement entry for deferred revenue?

• Do I have to manually enter the deferred revenue?

• What is the difference between deferred revenue and actual revenue in entries?

• How do I handle revenue that has not been earned?

• I have an invoice with an advance payment, how do I record it accounting-wise?

• When do I use a manual entry for revenue?

• Does deferred revenue affect the financial statements?

• What is the method for monthly revenue recognition?

• The invoice is for a full year, but we want to calculate the revenue each month, how?

• I need to know how to transfer revenue from the revenue account to the deferred revenue account?