Deferred revenue & expense

Spread an invoice's revenue or a bill's expense across the months it belongs to. Each period recognises a balanced slice, the total is recognised exactly once, and the balance-sheet deferral account returns to zero when the last period runs.

You invoice a client ₹1,20,000 for a twelve-month support contract in April. That's not April's income — it's ₹10,000 a month earned over the year. Deferred revenue (and its mirror, deferred expense) spreads an invoice or a bill across the months it actually belongs to, so your monthly profit tells the truth.

Spread it over N months

On Deferred revenue & expense, point a schedule at the invoice (revenue) or the bill (expense), set how many months to spread across and the start month. Finocket divides the total evenly, putting any leftover paisa on the final period — so the monthly slices add back to the contract total exactly.

Balanced recognition, every period

Because the invoice already booked its full revenue up front, a deferral first moves the whole amount off the profit & loss onto a balance-sheet holding account (Deferred Revenue, a liability; or Prepaid/Deferred Expense, an asset), then brings it back one month at a time. Each posting is a balanced journal, so your books stay tied throughout. The net effect: the amount is recognised exactly once in total, just spread over the schedule — and the holding account returns to zero when the last period recognises.

The recognition runner

You don't post each month by hand. As each period's month arrives, the recognition runner posts that slice's balanced voucher. It's idempotent: a period that's already recognised is skipped, so income or cost is never double-counted no matter how often the runner runs.

Access & control

Owners and assistants set up schedules; an invited accountant reads the recognition history. The deferral schedule and its journals sit inside your normal double-entry books, so they flow straight into the P&L and balance sheet.

Frequently asked questions

How do I spread an annual invoice across the year?

On Deferred revenue & expense, point a schedule at the invoice, set the number of months and the start month. Finocket divides the total evenly, putting any leftover paisa on the final period, so the monthly slices add back to the total exactly.

Won't the income be counted twice?

No. Because the invoice already booked its full revenue up front, a deferral first moves the whole amount to a balance-sheet holding account, then recognises it back one month at a time. The net effect is the amount recognised exactly once, just spread over the schedule.

What happens to the deferral account at the end?

It returns to zero. The holding account (Deferred Revenue as a liability, or Prepaid/Deferred Expense as an asset) fills on setup and empties as each period recognises, so once the last period runs there's nothing left parked on the balance sheet.

Do I have to post each month by hand?

No. As each period's month arrives, the recognition runner posts that slice's balanced voucher. It's idempotent — an already-recognised period is skipped — so income or cost is never double-counted however often it runs.

Budgets & ratio analysis

Read your books like an analyst: standard financial ratios (profitability, liquidity, leverage, efficiency) and a budget-vs-actual comparison, both from your double-entry books.

Scheduled report emails

Put any report on autopilot: email Receivables ageing, Payables ageing or Financial ratios as a PDF or CSV on a daily, weekly or monthly schedule — the same numbers you see on screen, delivered to your inbox.

Closing stock & cost of goods sold in your accounts

Fold inventory into your final accounts: closing stock on the balance sheet and cost of goods sold / gross profit on the P&L, at weighted-average cost — a presentation overlay that keeps the sheet balanced.