Text Description of the Bill in Advance Accounting Entries Graphic
This illustration shows how you can use the Bill in Advance invoicing rule to recognize your receivable immediately. For example, you receive an invoice payment for $3,000. The invoicing rule is Bill in Advance, and the accounting rule is 3 Month Fixed Duration. Over the course of three months, your accounting entries would be as follows:
January
| Receivables
| $3,000
|
|
| Unearned Revenue
|
| $3,000
|
| Unearned Revenue
| $1,000
|
|
| Revenue
|
| $1,000
|
February
| Unearned Revenue
| $1,000
|
|
| Revenue
|
| $1,000
|
March
| Unearned Revenue
| $1,000
|
|
| Revenue
|
| $1,000
|