can we send an invoice to a paid in advance customer(PIA), and book it as .... AR Dr unearned revenue Cr once we receive payment we will book... Cash Dr AR Cr then when we are ready to recognize revenue, we will book Unearned revenue Dr Revenue Cr Note : we are stream revenue since it is software rental business. Thanks
PIA customers-
Answers
Looks right... you just need to recognize the unearned based on the contract.
Filed Under:
FP&A