Distributing the Deferred Revenue Automatically on a Recurring Basis through the System

Example: If you are a property owner and you receive the annual rent in advance, say 12,000 Riyals,

the journal entry would be as follows:

• 12000 from Account/Treasury
• 12000 to Account/Advance Payments

After recording the advance revenue, we need to record the revenue for each month separately to reflect the monthly profitability. The accrual entry for each month would be:

• 1000 from Account/Advance Payments
• 1000 to Account/Rental Income

and then repeat this process monthly until the advance revenue amount is exhausted.

Therefore, in the following steps, we will define how to perform this process in a recurring “automatic” manner through the program.

1. Click on “Accounting” from the main menu.
2. Click on “Accounting Settings”.
3. Click on “Accounts Routing”.
4. Select “Treasury” from the menu on the left side.
5. Choose the routing type “Specify per each” instead of “Automatic Account Routing” as shown below.

1. From the main menu, click on “Finance”.
2. Click on “Treasures and Bank Accounts”.
3. Click on the “Add Treasury” button.
4. In the Add Treasury screen, fill in the treasury details as follows:
5. Status: Choose “Active” to activate the treasury or “Inactive” to deactivate it.
6. Treasury Name: Write the name of the treasury as you want it to appear in the program’s lists and windows.
7. Description: Add a general description of the nature or specialty of the treasury.
8. Account: Delete the phrase “Default Account” and then select the sub-account specific to “Deferred Revenue” account.
9. Permissions:
   • Deposit: Select from the dropdown menu the deposit permission in the treasury for a specific employee, job role, specific branch, or all.
   • Withdrawal: Select from the dropdown menu the withdrawal permission from the treasury for a specific employee, job role, specific branch, or all.

1. Click on “Finance” from the main menu.
2. Click on “Incomes”.
3. Click on the “New Income” button.
4. Enter the income data as follows:
   • Amount:
     • Enter the value or amount of the revenue.
     • Select the currency of the income voucher to be recorded.
   • Description: Enter any notes or additional guidance that describe the revenue.
   • Code Number: It is a serial number that distinguishes the income voucher, and you can change the number and control the format of the series through “Auto Numbering Settings“ in the account.
   • Date: Select from the calendar the date of adding the income voucher to the system.
   • Attachments: You can attach a picture of the income by clicking the “Upload” button and selecting the picture from your device, or through drag and drop.
   • Received By: Select the recipient of the income voucher.
   • Category: Select one of the categories from the dropdown menu or add a new category for income vouchers.
   • Treasury: Select the treasury or bank account that will receive the revenue, from the treasuries or bank accounts added to the account. For more details on how to add a new treasury/bank account, you can review the guide “Adding a Treasury/Bank Account“.
   • Journal Account: Select the Deferred Revenue account in the “Journal Account” field, for example: Advance Payments Account
   • Click on “Add Taxes” to assign tax to the income voucher if applicable.
   • Select “Assign Cost Centers” to link all or part of the revenue value with one of the cost centers in the account.
5. Click the “Save” button to issue the income voucher.

1. Click on “Finance” from the main menu.
2. Click on “Incomes”.
3. Click on “New Income”.
4. Ensure that you select the “Rental Income” account, for example, in the “Journal Account” field
5. In the treasury field, make sure to select the treasury that was created and linked to the Deferred Revenue account as previously explained.
6. Click on the “Recurring” checkbox.
7. Set the “Recurrence” duration, whether Weekly, Monthly, or Yearly. In the case of the example mentioned above, select “Monthly” recurrence to deduct the amount every month on the specified date
8. Select from the calendar the “End Date” when the repetition of the income voucher stops and the total amount of the deferred revenue has indeed been distributed
9. Click on the “Save” button.