Deferred Revenue (Credit Balance)
This is a pass-through account used to disperse the revenue of a single invoice into multiple periods based on the service dates of the associated revenue lines.
This account is recognized if the following configuration is saved in the database:
Settings / Program Settings / Financial / General - “Split Revenue by Period” is selected.
The receivable entry credits this account in the receivable period (instead of revenue) then it debits this account and credits revenue in the associated future period.
The account balance should be zero at the end of time. If journal entries are made to this account, they must be auto reversed to prevent incorrect future balances in the account.