Unearned revenues & Revenues recognition

Hello, I’ve been looking around the forum for a few hours now and I can’t seem to find solution for this problem. Let’s say I received a payment for 1 month membership on Aug 14. On that date, Cash & Unearned revenues are recorded. And 1 month later on Sep 14, Unearned revenues goes to 0 and I can recognize Revenues.

My question is, how do I record this transaction with Manager on Aug 14, so that Revenues will be automatically recognized on Sep 14? I’m processing many transactions every week and it is very hard to manually enter the records in Journal entries

If you receive a payment for a one months membership on Aug 14, then the income is earned on Aug 14 not Sep 14 as memberships are paid in advance (paid on Aug14 for the period Aug 14 to Sep 14), they are not paid in arrears.

Thank you for your answer. However I really don’t think that is the case. Revenues can only be recognized once the service is fully provided to the customer, so in this case it’s Sep 14. If it is 1 year membership, revenues can be recognized monthly.

No, the revenue is recognized before the customer is “entitled” to the service, not after they have used.
If the customer is entitled to use the service on Aug 15, then the income to use the service is recognised.

Yes but monthly in advanced not monthly in arrears.

Memberships are no different to insurance premiums - they are paid in advance.