Deferred revenues, or unearned revenue, are payments made in advance by customers for products yet to deliver or services yet to render.
Such payments are a liability for the company that receives them since it still owes its customers these products or services. The company cannot report them on the current Profit and Loss statement, or Income Statement, since the payments will be effectively earned in the future.
These future revenues must be deferred on the company’s balance sheet until the moment in time they can be recognized, at once or over a defined period, on the Profit and Loss statement.
For example, let’s say we sell a five-year extended warranty for $ 350. We already receive the money now but haven’t earned it yet. Therefore, we post this new income in a deferred revenue account and decide to recognize it on a yearly basis. Each year, for the next 5 years, $ 70 will be recognized as revenue.
Flectra Accounting handles deferred revenues by spreading them in multiple entries that are automatically created in draft mode and then posted periodically.
The server checks once a day if an entry must be posted. It might then take up to 24 hours before you see a change from draft to posted.
Such transactions must be posted on a Deferred Revenue Account rather than on the default income account.
Configure a Deferred Revenue Account¶
To configure your account in the Chart of Accounts, go to, click on Create, and fill out the form.
This account’s type must be either Current Liabilities or Non-current Liabilities
Post an income to the right account¶
Select the account on a draft invoice¶
On a draft invoice, select the right account for all the products of which the incomes must be deferred.
Choose a different Income Account for specific products¶
Start editing the product, go to the Accounting tab, select the right Income Account, and save.
Change the account of a posted journal item¶
To do so, open your Sales Journal by going to, select the journal item you want to modify, click on the account, and select the right one.