Deferred Revenue Management – GoldFinch Clientcare

Applies toSales More Features

AudienceAll users

Last updatedSeptember 29, 2025

In this article

Enable Deferred Revenue Management
Set Up Deferred Templates
Configure Account Posting Setup
Assign Default Deferral Templates to Items
Posted Sales Invoices
Schedule Logic
Post Monthly Revenue Recognitions

Deferred revenue represents payments received by a company for software or services that have not yet been delivered. Since this revenue is unearned, it is recorded as a liability on the balance sheet. As the software or services are delivered, revenue is recognized over time and reclassified from deferred to earned revenue.

Enable Deferred Revenue Management

Navigate to Custom Settings

Managing GoldFinch Custom Settings
Add Custom Setting
- Name: EnableDeferralManagement
- Value: True

Set Up Deferred Templates

Go to Company Setup.
Create or Edit a Deferral Template.
Complete Required Fields:

Field	Description
No. of Months	Defines the length of the deferral schedule.
Account Posting Setup	Allows you to override standard revenue account postings.
Deferred Revenue GL Account	Specifies the account used to record deferred (unearned) revenue.
Revenue GL Account	Specifies the account used to recognize earned revenue.

Configure Account Posting Setup

Create a dedicated Account Posting Setup to override the standard Revenue GL Account when a deferral template is applied.

Make sure to create a new Item Posting Group called Deferred and assign it to this special Account Posting Setup. This ensures the special setup is used only for Sales Invoice Lines with a deferral template. Sales Invoice Lines without a deferral template will continue to use the standard Account Posting Setup.

Assign Default Deferral Templates to Items

Each Item can have a Default Deferral Template.
The template can also be modified at the Sales Order or Sales Invoice level if needed.

Posted Sales Invoices

GL Entries will credit the Deferred Revenue GL Account instead of the regular revenue account.

A Deferral Schedule will be automatically generated to manage revenue recognition over time.

Schedule Logic

Posting Date:
Each recognition entry is dated at the end of each month, beginning in the month the invoice is posted.
Recognition Amount Calculation:
Amount per Month = (Line Amount + Discount) / No. of Months
Sign of the Amount:
- Sales Invoices: Positive amounts.
- Credit Memos: Negative amounts (default).
Discounts and Sales Tax:
Fully recognized at invoice posting (not deferred).

Post Monthly Revenue Recognitions

To recognize revenue each month:

Go to the Deferral Schedules.
Select the Not Recognized view.
Select the Deferral Schedules you want to recognize.
Click Post Recognition to generate and post the monthly entries.

Article Deferred-Revenue-Management · Last updated September 29, 2025 · GoldFinch ERP Help Center