Distributing revenue via 'Pre-invoiced turnover'

Financial settings for invoicing before journalizing

In your administration settings, you have defined when you want to invoice your guests (under Bookings) and when you want to register the related revenue (under Accounting).
Read more: When to invoice guests: invoice moment, Correlation between invoice moment and journalization

If you have chosen to invoice 'at confirmation' in combination with the journalization setting 'Journalize turnover at the end date of the realization period' or 'distribute turnover across months', your revenue will be distributed via ledger account 1700 (pre-invoiced turnover).

Reason for invoicing in advance

Many guests prefer to receive an invoice upon confirmation, especially if you ask them to pay for their holiday before arrival via a payment schedule. However, you may have reasons to only post your revenue once the service (the holiday) has actually been delivered (at guest check-out, or distributed over the stay). In this situation, you have a (paid) invoice in your administration for a period of time, while the revenue is only acknowledged later.

By using the ledger account 'Pre-invoiced turnover' as a distribution key, i.e. a temporary holding location for this revenue, you can accurately show both your current financial situation and your expected future income.

Journalization example

In the example below, a booking has been made with a value of €1000. Invoicing occurs upon confirmation. VAT is posted on the invoice date instead of the realization date. This separation of the VAT is part of the journalization settings.

Journalization on invoice date (upon sending the invoice):
Debit €1000 to ledger account 1300 (reservations)
Credit €917.43 to ledger account 1700 (pre-invoiced turnover)
Credit €82.57 to ledger account 1800 (VAT)
Rental revenue on suspense account, VAT is directly posted to the correct ledger account.

Journalization upon payment(s) by guest:
Via ledger account 1030 (payment provider suspense account), or another payment method
Credit €1000 to ledger account 1300 (reservations)
This balances the debit made on the invoice date.

Journalization on realization date:
Debit €917.43 to ledger account 1700 (pre-invoiced turnover)
Credit €917.43 to ledger account 8000 (rental turnover)
The amount is moved from Pre-invoiced to actual Rental turnover.

Setting up the distribution key

Ledger account 1700, Pre-invoiced turnover, is automatically the account where your revenue is recorded if your invoice and journalization settings require it. This ledger account acts as the distribution key.

Ledger account 8000, Rental turnover, is always linked as the target account for journal entries on the realization date. In other words, ledger account 1700 is set as the default distribution key for ledger account 8000.
The journalization on the realization date as it is shown in the example, is therefore what happens if no manual adjustments are made.

However, it is possible to manually set other ledger accounts as target accounts with distribution key 1700. This allows you to move part of the revenue directly to these ledger accounts on the journalization date (depending on how your costs are configured). That way not everything goes to 8000: Rental turnover.

Go to 'Ledger accounts', open and edit the relevant account, and under 'Distribute via', choose 1700: Pre-invoiced turnover. You will then see the distribution key indicated in the 'distribute via' column in the overview.