For proper booking, Fenerum requires few e-conomic accounts to be set up in Fenerum.
Future revenue account
Revenue accounts (can be a single account, defined per Country/UE/non-UE or even some more complicated setup described in Revenue Groups section)
When the invoice is issued it will be booked as contra entry to the proper Revenue Account. You can have different revenue accounts for different countries (i.e. book you Denmark revenue on the one account and the rest of the revenue on the others) and also separate account for EU and non-EU revenue.
Then Fenerum will look if this invoice requires revenue recognition. Invoice requires revenue recognition if it covers more than one month or it was issued on the different month that it covers.
Revenue recognition is done by moving whole revenue from the invoice into "Future revenue account" and then splitting the revenue into multiple revenue entries - one for each month Invoice covers.
For example, you are booking Invoice for 1000 DKK which covers subscription for two months - October and November. Let's say your Future revenue account is 5660 and your Revenue account for Denmark is 1020.
Fenerum first creates an Invoice contra entry on 1020 with the type "Invoice". Next it will create "Deferred revenue" entry from 1020 to 5660.
Then the "Revenue recognition" begins. Half of the revenue will be moved from 5660 to 1020 with the month set to October and half of it with the month set to November.
If you are using the "Revenue groups" feature the booking process might be a little more complicated. With "Revenue groups" you can configure different types of revenue which will go into different ERP accounts.
If your whole invoice will match single Revenue Group then booking process will look similar to Default Flow with given revenue account used.
In case when single invoice covers items from different revenue group Fenerum will first book the invoice onto the organization's default revenue account. From there it will move the proper amount to different revenue accounts, based on your Revenue Group. Then for each used revenue group it will follow a similar process as Default Flow - it will move it to the future revenue account and split via months.
Let's say we have same account settings as in Default Flow example, but also we have two Revenue Groups - one on 1021 account and one on 1022 account.
Our invoice, as previously, is for 1000 DKK and covers two months, but now it consists of two lines - one for Normal Subscription which should go to revenue 1021 and costs 750 DKK, and one for extra services, which should go to 1022 and costs 250 DKK.
Fenerum first will book Invoice to 1020 (similar to how it it's done for Default Flow) and then will move out 750 DKK on 1021 and 250 DKK to 1022. From these two accounts, it will move revenue to Future Revenue Account.
After that, for each revenue account, it will do "Revenue recognition" in a similar way as in Default Flow.