Deferred/Unbilled Revenue Settings
The Deferred/Unbilled Revenue settings control how revenue appears in financial reports. You can calculate balances by contract or by customer, affecting how deferred and unbilled amounts show in the Deferred Revenue Report. This guide explains the differences and shows the impact with an example, including a note on changing these settings.
Update Deferred/Unbilled Revenue Settings
Follow these steps to review or change your revenue calculation method:
Go to Settings.
Select Organization Settings.
In the Organization section, select Accounting.
Scroll to the Deferred / Unbilled Revenue section.
Choose one of the following calculation methods:
By Contract: Revenue is assessed individually per contract. Each contract is evaluated independently. If Contract A has been billed but Contract B has not, revenue for Contract B will be categorized as Unbilled, even if the customer has paid for another contract.
By Customer: Revenue is assessed based on the customer’s overall billing status. The system reviews all contracts under a customer. If at least one contract has been billed, unbilled revenue from other contracts may be rebalanced into Deferred instead of remaining as Unbilled.
Review the Impact in Reports
To see how this affects revenue classification:
Go to Reporting.
Open the Deferred Revenue report.
Select a customer to view the detailed breakdown.
If the By Customer option is selected and the customer has multiple contracts:
You may see a Rebalancing Adjustment line.
This moves balances from Unbilled to Deferred when the customer has been billed on any contract.
In the roll-up view, all revenue may appear as Deferred, even if individual contract details show Unbilled.
This behavior is expected when revenue is calculated at the customer level rather than the contract level.
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