Deferred revenue is a liability that is created when money is received by your association for goods and services that are not yet provided. Revenue is recognized, and the deferred revenue liability eliminated when the services are provided. In Nimble AMS, deferred revenue is recorded for products that are set with a deferred revenue method. A deferred revenue method sets the type of revenue that will be deferred and the GL account where the deferred revenue will be recorded.
By default, Nimble AMS supports deferred revenue for memberships, event registrations, and subscriptions. However, with development effort, custom deferred schedule calculators can be created for any product type.
Deferred revenue is defined on each product, allowing great flexibility to what revenue is deferred and what is not deferred. For example, membership dues can be deferred, but the membership join fee can be recognized immediately.
The recognition of deferred revenue occurs automatically via a scheduled nightly job. The job recognizes the revenue based on the deferred schedules that have a Deferred Balance greater than zero and a matching Next Recognition Date. An administrator can set the scheduled nightly job. Learn how to Set the Recognize Deferred Revenue Scheduled Job.
In Nimble AMS, you use productsto represent the goods or services your association offers to your constituents. Your products are set up using product types which define what attributes the products have. For example, an event session product has a start and end date, but a merchandise product does not. Your products are purchased by your constituent using orders.
Deferred Revenue Methods
In Nimble AMS, staff need to setup a deferred revenue method and attach it to a productin order to record revenue in a deferred GL account until the recognition date occurs. A deferred revenue method can be configured for membership, registration, or subscription revenue.
Deferred Revenue Schedules
In Nimble AMS, deferred schedules are used to track and manage the automatic recognition of your deferred revenue. If your association is using deferred revenue in Nimble AMS, deferred schedules are created automatically for orders that include products with a deferred revenue method.