You have created a subscription with a period code Quarterly and an accrual period code Monthly. The sales price for the subscription is EUR 9,000. You create a fee transaction that you invoice. The voucher for the fee transaction is as follows:

*For more information about the posting types, see Posting transactions to ledger accounts (form).

Depending on the parameter settings, the monthly amount to be accrued is EUR 3,000, one third of the quarterly subscription fee. For more information about how parameter settings can influence the monthly amount, see the example in Accrued amount.

When you accrue this amount it is debited from the WIP - Subscriptionaccount and credited to the Accrued revenue - Subscriptionaccount:

Your customer decides to change to another subscription. You issue a credit note to the customer. However, you have already accrued one of the monthly periods for the quarterly subscription so you have to reverse the accrued amount.

The Reverse accruals on creditingoption in the Subscription parameters form is set to Manualso you must manually reverse the accrued periods. For more information about this option, see Subscription parameters (form).

To reverse the accrued period manually, you select the Reverse accrued revenuecheck box in the Accrue subscription revenueform and post the transaction.

Two transactions are added to the voucher for the subscription transaction:

The WIP - Subscriptionis credited with EUR 3,000 and the Accrued revenue - Subscriptionis debited with EUR 3,000.