User-level: System Administrator
Previous steps: N/A
Unearned income is money you have received in advance of having earned it. Another way to look at it, is the difference between what you’ve earned vs what you’ve invoiced.
This feature is most relevant to larger, more complex businesses with revenue over $/£10M who are required to be compliant with the accounting standard on revenue recognition known as IFRS 15*. This feature replicates how you would report on your revenue received in advance liability via a spreadsheet and applies only to fixed-fee and % of contract stages.
*IFRS 15 is an internationally accredited accounting practice used to recognise revenue.
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