HaloITSM Guides

Halo has the ability to configure deferred revenue for Pre-Pay, with expansions beyond this in the near future. This is designed to handle the scenario where you have taken payment for a service and the revenue cannot yet be recognsied because (for example) you may take payment in January for work that is not carried out until May, so to accurately account for the revenue you may want to defer the revenue. 

The first thing to do is enable the setting (Configuration>Billing>General Settings>*Click into the Deferred Revenue Tab*):

Before configuring this, please make sure the following has been configured correctly:

1. The setting within Configuration > Time Management is disabled:
   
   
2. This option within configuration > Billing > Charge Rates, is set to 0 (disabled) or populated with a number:
   
   
   
   
3. Enable the Deferred Revenue checkbox in billing general settings
4. Select a Deferred Revenue Customer (screenshot above)
5. Set an 'Item to use for Pre Pay and Deferred Revenue Invoice line'
6. 
   

When a Prepay amount is added and invoiced the invoice will be created with the Deferred Revenue Item selected above. If integrating with a 3rd party accounting application this Item/Product should have a default Account that is a liability Account.

When time is logged to the Prepay Contract for the Customer (and is considered ready for invoicing) this time will appear in the "Deferred Revenue Pre-Pay" list (as below)

If an invoice is generated it will be created for the Deferred Revenue Customer and will contain a negative line amount and a positive line amount. This will have the effect of decreasing some or all of the Deferred Revenue Account and increasing the Product Income Account and this amount of revenue will be "recognised".