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