Deferred Revenue Waterfall Report

This report shows the balance of all Deferred Revenue Accounts as of the end of a selected month, and a forecast of expected changes in deferred revenue based on the latest Billing Schedules and Revenue Schedules.

This report forecasts changes to deferred revenue in future periods (relative to the selected As Of date) based on any relevant Revenue Schedules or Billing Schedules. Manual Journal Entries are not currently included for future periods.

Note: In order for a GL Account to be included in this report, it must have an Account Sub-Type of Deferred Revenue that can be updated when managing your Chart of Accounts.

Report Columns Defined: 

• Deferred Revenue Balance: Total balance in all Deferred Revenue accounts* as of the end of the selected month.
  * Accounts with "Deferred Revenue" as the Account Sub-Type
• Sum of Future Schedules: Total anticipated increase or decrease to Deferred Revenue accounts in future periods beyond the selected month, determined by a Subscription's Billing Schedules (+) and Revenue Schedules (-), as well as any Subscription or Manual Journal Entries.
• Variance: The anticipated remaining balance in Deferred Revenue accounts after all future Journal Entries for Billing and Revenue Schedules have been posted.
• Recognized in Future Periods: Total revenue to be recognized beyond the selected month for products which impact Deferred Revenue accounts.
• Future Periods (by month): Net anticipated increase or decrease to Deferred Revenue accounts in a given month, determined by a Subscription's Billing Schedules (+) and Revenue Schedules (-), as well as any Subscription or Manual Journal Entries.

The report is grouped by Customer by default, but can also be grouped by the selected GL Account(s).

By default the report contains a filter to exclude any Subscriptions which are in Draft status. This filter can be removed by clicking the X next to the filter.

04.12.2022-This toggle is currently unavailable & will be released at a future date.

This report also contains a toggle labeled “Exclude Future Invoices”, which is enabled by default. When enabled, future periods only include revenue for invoices which have been posted on or before the selected As Of date. Please note that this only applies for Products which impact Deferred Revenue accounts on Invoice Posting.

Clicking into any of the values in the report (besides Variance) drills down into a Deferred Revenue Waterfall Detail report with supporting data including Journal Entries, Billing Schedule Lines, or Revenue Schedule Lines for the selected time period.

Example Deferred Revenue Balance detail:

Example detail for a future period: 

Use Case Examples

When a Subscription Charge is configured as above, future periods will show positive amounts when an invoice is scheduled to be posted (based on the Billing Schedule) and negative amounts when revenue is scheduled to be posted (based on the Revenue Schedule), as well as any Manual Journal Entries which impact Deferred Revenue accounts.

When a Subscription Charge is configured as above, future periods will show negative amounts when revenue is scheduled to be posted (based on the Revenue Schedule), as well as any Subscription or Manual Journal Entries which impact Deferred Revenue Accounts.

When the Accounting Information for a Subscription Charge does not include transactions that impact Deferred Revenue accounts, it is not included in the report.

Additional Notes & Report Considerations

• Future periods currently show all Revenue Schedule transactions for Deferred Revenue products, which may include revenue for periods which have not yet been invoiced.
• When grouping by Contract/Order Number, journal entries associated with Invoice transactions will appear with a blank Contract/Order Number. As of now, we would only recommend grouping by fields on the Customer or Chart of Accounts.