What is revenue received in advance?

Revenue received in advance is an accounting term used to define payments that a company has received in advance of earning then, and these payments are recorded as a liability.

In Retail POS, revenue received in advance is found on register closures as Deposits (revenue received in advance) under the Delivery and pickup drop-down in the New sales section.

This is comprised of the value of deposits taken on unfulfilled sales.

Revenue-Received-In-Advance-Register-Closure.png

As the unfulfilled sales have yet to be fulfilled, you have yet to earn the value of the sale by providing the products, and any deposit taken for these sales is classified as revenue received in advance.

Only once the sale has been fully paid, fulfilled, and marked as complete, will the revenue received in advance be removed and added to revenue. This will appear on the register closure for the period that the sale is completed.

Revenue-Received-In-Advance-Register-Closure-Removed.png

Xero and QuickBooks Online

For merchants integrated with Xero or QuickBooks Online, revenue received in advance will post to your Xero or QuickBooks Online account as part of the accounts receivable invoice generated by a register closure.

For more detail on what information posts to Xero or QuickBooks Online as part of a register closure, refer to our Using the Xero Integration and Using the QuickBooks Online integration guides.

 

Did this answer your question?
Have more questions? Contact us so that we can help you out.