Deferred (Unearned) Revenue – Definition and Accounting Procedures
Deferred or unearned revenue is an advance payment made by a customer for a product or service that has not yet been rendered (delivered).
Deferred (Unearned) Revenue
Deferred (unearned) revenue refers to amounts invoiced or paid by a customer for services or product that has yet been delivered to the buyer. Deferred (unearned) revenue is an accounting entry to alert management of potential revenue once the company complies with the agreement with the customer.