I am a Chartered Accountant in Canada. It appears there is no report to show deferred revenue. This is where a customer made a deposit payment, but no corresponding invoice was issued yet.
I see 2 issues with how Manager is currently handling accounts receivable and deferred revenue:
Aged accounts receivable report total does not match the accounts receivable balance on the Trial Balance report if there exists a customer who made a deposit payment, but no corresponding invoice was issued yet (i.e. deferred revenue exists).
There is no report to show deferred revenue details (i.e. customer deposits for which there is no invoice issued yet).
As a professional accountant, I would like to see one of the following two possible corrections to be implemented:
Include deferred revenue in aged accounts receivable report as negative values. Most other accounting software will do this, but as a professional accountant I will say that is not the right way to do it (see point #2 below for correct way)
Accounts receivable and deferred revenue are two different and distinct concepts in accounting. Accounts receivable is an asset and deferred revenue is a liability. It is not appropriate to net these two items together. The correct way of handling this is to have a trial balance account classified as a liability that tracks deferred revenue. Just like there is an account that tracks accounts receivable (for which you can for example creating an aging report), there should be a liability account that tracks deferred revenue, and be able to create a similar aging report, but only for deferred revenue.