Recognize revenue in the months you earn it
Add revenue recognition on the invoice line, preview the schedule and approve the invoice. Wafeq posts each month's share to your revenue account.
Features
Revenue that matches the work you deliver
Bill upfront once, and let the schedule post the month-end entries.
Right on the invoice line
Put the invoice line on your unearned revenue account and click “Add Revenue Recognition”. There's no separate journal to set up.
See the schedule before you save
Wafeq previews every posting date, the revenue recognized each month and what's still unearned, so you can check it first.
Revenue recognized every month
Once the invoice is approved, Wafeq posts each month's revenue on its last day, and unearned revenue runs down to zero.
How it works
From the invoice to the monthly entries
Four steps, then Wafeq takes over.
Create the invoice
Bill the customer upfront and put the line on your unearned revenue account.
Add revenue recognition
Click “Add Revenue Recognition” on the line and set the start date, or tick “Same as invoice”.
Choose the period and account
Pick 3, 4, 6, 12 or 24 months or a custom end date, then the revenue account and the spread method.
Approve the invoice
Wafeq posts each month's share to the revenue account until the schedule ends.
Spread method
Choose how it's split
Choose “Even monthly split” or “Split by days in month”. If the schedule starts after the 1st, the first month gets a partial share.
- Even monthly split
- Split by days in month
- Posted on the last day of each month
More control
Set it up in seconds, adjust it any time
Let Wafeq AI prepare the schedule, and keep it right when a contract changes.
Ask Wafeq AI to set it up
Tell Wafeq AI which invoice to spread. It suggests the revenue account and dates, previews the schedule and creates it once you approve.
Reduce it with a credit note
Gave a discount or refunded part of it? Apply a credit note to the invoice line, and Wafeq re-spreads the remaining unearned revenue over the months left.
End it early
Contract cancelled? End the recognition on the date you choose and move the remaining balance to the account you pick.
Also included
The details that keep it right
Small things that save time at every month-end.
Linked to the invoice date
Tick “Same as invoice”, and the schedule follows the invoice date if it changes.
An entry for every month
Open any posted month to see its journal entry.
Status at a glance
See which schedules are “Scheduled”, “Recognizing” or “Fully recognized”.
Edit any time
Change the dates, amount or account, and Wafeq recalculates the schedule from the start.
Additional features
Spread prepaid expenses too
Paid a year of rent or insurance upfront? Add amortization on the bill line, and Wafeq moves each month's share from prepaid expenses to your expense account.
FAQs
Frequently asked questions
It records revenue you billed upfront, like an annual subscription, in the months you deliver the service, instead of all in the month you invoiced it.
The invoice line sits on your unearned revenue account. Each month, Wafeq moves that month's share from it to the revenue account you choose, such as subscription revenue.
On the last day of each month, and on the end date for the last one. Entries start once the invoice is approved; nothing posts while it's a draft.
If the schedule starts after the 1st, the first month is partial, so its share is smaller. Choose “Split by days in month” to base every month on its number of days.
Yes. To lower the amount, apply a credit note to the invoice line, or end the schedule early on the date you choose if you want to stop it.
Yes. Ask Wafeq AI in the chat: it reads the invoice, suggests the dates and the revenue account, and shows the schedule. Nothing is created until you approve.
Yes. Amortization does the same on bill lines, moving each month's share from prepaid expenses to an expense account.
It's a paid add-on that works with your Wafeq plan. Add it to your subscription from the billing page. Without it, scheduled entries stop posting until you add it.
Book revenue when you earn it
Set up the schedule once on the invoice, and let Wafeq post the rest.