From ab8499cd65aadbb826f1540768fc0bd210d65a35 Mon Sep 17 00:00:00 2001 From: Jonathan <46810843+RamblingFiddler@users.noreply.github.com> Date: Thu, 9 Jan 2020 16:52:03 +0100 Subject: [PATCH] [IMP] accounting: add extra details and tips to Deferred Revenues documentation (#519) --- .../customer_invoices/deferred_revenues.rst | 160 +++++++++--------- 1 file changed, 80 insertions(+), 80 deletions(-) diff --git a/accounting/receivables/customer_invoices/deferred_revenues.rst b/accounting/receivables/customer_invoices/deferred_revenues.rst index 15bbac04b..8ee8eb1ec 100644 --- a/accounting/receivables/customer_invoices/deferred_revenues.rst +++ b/accounting/receivables/customer_invoices/deferred_revenues.rst @@ -1,54 +1,56 @@ ================= Deferred Revenues ================= -**Deferred revenues**, or **unearned revenue**, are payments made in advance -by customers for products yet to deliver or services yet to render. +**Deferred revenues**, or **unearned revenue**, are payments made in advance by customers for +products yet to deliver or services yet to render. -Such payments are a **liability** for the company that receives -them since it still owes its customers these products or services. -The company cannot report them on the current **Profit and Loss statement**, -or *Income Statement*, since the payments will be effectively -earned in the future. +Such payments are a **liability** for the company that receives them since it still owes its +customers these products or services. The company cannot report them on the current **Profit and +Loss statement**, or *Income Statement*, since the payments will be effectively earned in the future. -These future revenues must be deferred on the company's balance sheet -until the moment in time they can be **recognized**, at once or over a -defined period, on the Profit and Loss statement. +These future revenues must be deferred on the company's balance sheet until the moment in time they +can be **recognized**, at once or over a defined period, on the Profit and Loss statement. -For example, let's say we sell a five-year extended warranty for $ 350. -We already receive the money now but haven't earned it yet. Therefore, -we post this new income in a deferred revenue account and decide to -recognize it on a yearly basis. Each year, for the next 5 years, $ 70 -will be recognized as revenue. +For example, let's say we sell a five-year extended warranty for $ 350. We already receive the money +now but haven't earned it yet. Therefore, we post this new income in a deferred revenue account and +decide to recognize it on a yearly basis. Each year, for the next 5 years, $ 70 will be recognized +as revenue. -Odoo Accounting handles deferred revenues by spreading them in multiple -entries that are automatically created periodically. +Odoo Accounting handles deferred revenues by spreading them in multiple entries that are +automatically created in *draft mode* and then posted periodically. +.. note:: + The server checks once a day if an entry must be posted. It might then take up to 24 hours before + you see a change from *draft* to *posted*. Prerequisites ============= -Such transactions must be posted on a **Deferred Revenue Account** rather than -on the default income account. + +Such transactions must be posted on a **Deferred Revenue Account** rather than on the default income +account. Configure a Deferred Revenue Account ------------------------------------ -To configure your account in the **Chart of Accounts**, -go to :menuselection:`Accounting --> Configuration --> Chart of Accounts`, -click on *Create*, and fill out the form. + +To configure your account in the **Chart of Accounts**, go to +:menuselection:`Accounting --> Configuration --> Chart of Accounts`, click on *Create*, and fill out +the form. .. image:: media/deferred_revenues01.png :align: center :alt: Configuration of a Deferred Revenue Account in Odoo Accounting .. note:: - This account's type must be either *Current Liabilities* or *Non-current - Liabilities* + This account's type must be either *Current Liabilities* or *Non-current Liabilities* Post an income to the right account ----------------------------------- + Select the account on a draft invoice ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -On a draft invoice, select the right account for all the products of which the -incomes must be deferred. + +On a draft invoice, select the right account for all the products of which the incomes must be +deferred. .. image:: media/deferred_revenues02.png :align: center @@ -56,19 +58,21 @@ incomes must be deferred. Choose a different Income Account for specific products ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -Start editing the product, go to the *Accounting* tab, select the right -**Income Account**, and save. + +Start editing the product, go to the *Accounting* tab, select the right **Income Account**, and +save. .. image:: media/deferred_revenues03.png :align: center :alt: Change of the Income Account for a product in Odoo .. tip:: - It is possible to automate the creation of revenue entries for these products - (see: `Automate the Deferred Revenues`_). + It is possible to automate the creation of revenue entries for these products (see: + `Automate the Deferred Revenues`_). Change the account of a posted journal item ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ + To do so, open your Sales Journal by going to :menuselection:`Accounting --> Accounting --> Sales`, select the journal item you want to modify, click on the account, and select the right one. @@ -77,29 +81,29 @@ want to modify, click on the account, and select the right one. :align: center :alt: Modification of a posted journal item's account in Odoo Accounting - Deferred Revenues entries ========================= + Create a new entry ------------------ -A **Deferred Revenues entry** automatically generates journal entries at -the right time until the full amount of the income is recognized. -To create a new entry, go to :menuselection:`Accounting --> Accounting --> Deferred -Revenues`, click on *Create*, and fill out the form. +A **Deferred Revenues entry** automatically generates all journal entries in *draft mode*. They are +then posted one by one at the right time until the full amount of the income is recognized. -Click on **select related purchases** to link an existing journal item to -this new entry. Some fields are then automatically filled out, and the -journal item is now listed under the **Related Sales** tab. +To create a new entry, go to :menuselection:`Accounting --> Accounting --> Deferred Revenues`, click +on *Create*, and fill out the form. + +Click on **select related purchases** to link an existing journal item to this new entry. Some +fields are then automatically filled out, and the journal item is now listed under the **Related +Sales** tab. .. image:: media/deferred_revenues05.png :align: center :alt: Deferred Revenue entry in Odoo Accounting -Once done, you can click on *Compute Revenue* (next to the *Confirm* -button) to generate all the values of the **Revenue Board**. This board -shows you all the entries that Odoo will post to recognize your -revenue, and at which date. +Once done, you can click on *Compute Revenue* (next to the *Confirm* button) to generate all the +values of the **Revenue Board**. This board shows you all the entries that Odoo will post to +recognize your revenue, and at which date. .. image:: media/deferred_revenues06.png :align: center @@ -107,56 +111,54 @@ revenue, and at which date. What does "Prorata Temporis" mean? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -The **Prorata Temporis** feature is useful to recognize your revenue -the most accurately possible. -With this feature, the first entry on the Revenue Board is computed based -on the time left between the *Prorata Date* and the *First Recognition Date* -rather than the default amount of time between recognitions. +The **Prorata Temporis** feature is useful to recognize your revenue the most accurately possible. -For example, the Revenue Board above has its first revenue with an amount of -$ 4.22 rather than $ 70.00. Consequently, the last entry is also lower and -has an amount of $ 65.78. +With this feature, the first entry on the Revenue Board is computed based on the time left between +the *Prorata Date* and the *First Recognition Date* rather than the default amount of time between +recognitions. +For example, the Revenue Board above has its first revenue with an amount of $ 4.22 rather than +$ 70.00. Consequently, the last entry is also lower and has an amount of $ 65.78. Deferred Entry from the Sales Journal ------------------------------------- + You can create a deferred entry from a specific journal item in your **Sales Journal**. To do so, open your Sales Journal by going to -:menuselection:`Accounting --> Accounting --> Sales`, and select the journal item you -want to defer. Make sure that it is posted in the right account (see: `Change the -account of a posted journal item`_). +:menuselection:`Accounting --> Accounting --> Sales`, and select the journal item you want to defer. +Make sure that it is posted in the right account (see: +`Change the account of a posted journal item`_). -Then, click on *Action*, select **Create Deferred Entry**, and fill out the form the -same way you would do to `create a new entry`_. +Then, click on *Action*, select **Create Deferred Entry**, and fill out the form the same way you +would do to `create a new entry`_. .. image:: media/deferred_revenues07.png :align: center :alt: Create Deferred Entry from a journal item in Odoo Accounting - Deferred Revenue Models ======================= -You can create **Deferred Revenue Models** to create your Deferred Revenue -entries faster. -To create a model, go to :menuselection:`Accounting --> Configuration --> Deferred -Revenue Models`, click on *Create*, and fill out the form the same way you would -do to create a new entry. +You can create **Deferred Revenue Models** to create your Deferred Revenue entries faster. + +To create a model, go to :menuselection:`Accounting --> Configuration --> Deferred Revenue Models`, +click on *Create*, and fill out the form the same way you would do to create a new entry. .. tip:: You can also convert a *confirmed Deferred Revenue entry* into a model by opening it from :menuselection:`Accounting --> Accounting --> Deferred - Revenues` and then, by clicking on the button **Save Model**. - + Revenues` and then, by clicking on the button *Save Model*. + Apply a Deferred Revenue Model to a new entry --------------------------------------------- -When you create a new Deferred Revenue entry, fill out the **Deferred Revenue -Account** with the right recognition account. -New buttons with all the models linked to that account appear at the top of the form. -Clicking on a model button fills out the form according to that model. +When you create a new Deferred Revenue entry, fill out the **Deferred Revenue Account** with the +right recognition account. + +New buttons with all the models linked to that account appear at the top of the form. Clicking on a +model button fills out the form according to that model. .. image:: media/deferred_revenues08.png :align: center @@ -164,29 +166,27 @@ Clicking on a model button fills out the form according to that model. Automate the Deferred Revenues ============================== -When you create or edit an account of which the type is either *Current Liabilities* -or *Non-current Liabilities*, you can configure it to defer the revenues that -are credited on it automatically. + +When you create or edit an account of which the type is either *Current Liabilities* or *Non-current +Liabilities*, you can configure it to defer the revenues that are credited on it automatically. You have three choices for the **Automate Deferred Revenue** field: #. **No:** this is the default value. Nothing happens. -#. **Create in draft:** whenever a transaction is posted on the account, a draft - *Deferred Revenues entry* is created, but not validated. You must first - fill out the form in :menuselection:`Accounting --> Accounting --> Deferred Revenues`. -#. **Create and validate:** you must also select a Deferred Revenue Model - (see: `Deferred Revenue Models`_). Whenever a transaction is posted on - the account, a *Deferred Revenues entry* is created and immediately - validated. +#. **Create in draft:** whenever a transaction is posted on the account, a draft *Deferred Revenues + entry* is created, but not validated. You must first fill out the form in + :menuselection:`Accounting --> Accounting --> Deferred Revenues`. +#. **Create and validate:** you must also select a Deferred Revenue Model (see: + `Deferred Revenue Models`_). Whenever a transaction is posted on the account, a *Deferred + Revenues entry* is created and immediately validated. .. image:: media/deferred_revenues09.png :align: center :alt: Automate Deferred Revenue on an account in Odoo Accounting .. tip:: - You can, for example, select this account as the default **Income Account** - of a product to fully automate its sale completely. (see: `Choose a different - Income Account for specific products`_). + You can, for example, select this account as the default **Income Account** of a product to fully + automate its sale completely. (see: `Choose a different Income Account for specific products`_). .. seealso:: * :doc:`../../others/configuration/account_type`