Accrued revenue, also known as unbilled revenue, represents revenue a business has earned from providing goods or services but has not yet received payment for. This type of revenue is recognized in the current accounting period, even if payment hasn't been collected yet. It's treated as a current asset on the balance sheet, reflecting the business's right to receive payment in the future.
Deferred revenue, also known as unearned revenue, is money a company receives before it delivers a product or service. It's a liability on the balance sheet until the company fulfills its obligations to the customer.
Factual Example: Airtel
-> When you pay Rs. 299 for Airtel's Postpaid service, and they bill you at the end of the month. That's Accrued Revenue
-> But when you prepay Rs. 2000 for 6 Months of broadband, Airtel treats it as Deferred Revenue until they provide their service every month.
----------------------------------------------------------------------------------------------------------
#oracle #ebs #r12 #ar #revenue #accrued #deferred #comparison #examples
No comments:
Post a Comment