JE-131 Mar 2026Adjustingposted
Accrue March's unbilled work.
| Account | Dimensions | Debit | Credit |
|---|---|---|---|
| 1150 Unbilled receivables | 9,000 US Dollar | ||
| 4000 Revenue | 9,000 US Dollar | ||
| Totals | 9,000 US Dollar | 9,000 US Dollar | |
Balanced.
Journal entry for accrued revenue
At month-end, debit Unbilled receivables and credit Revenue for work delivered but not yet invoiced. When the invoice goes out, debit Accounts receivable and credit Unbilled receivables.
- Work delivered in March
- $9,000
- Invoiced
- April 3, 2026
- Entity
- Illustrative company
- Basis
- Accrual
- Currency
- USD
- Period
- March – April 2026
The worked example
A consulting firm delivers $9,000 of work in March under a time-and-materials contract and invoices it on April 3, 2026.
Adjusting entry · March 31, 2026
Transaction · April 3, 2026
JE-23 Apr 2026Manualposted
Invoice the work.
Journal entry JE-2, 2 lines Account Dimensions Debit Credit 1100 Accounts receivable 9,000 US Dollar 1150 Unbilled receivables 9,000 US Dollar Totals 9,000 US Dollar 9,000 US Dollar Balanced.
What the entries do to the accounts
Every entry above posted to the ledger, starting from zero balances: the net debit or credit each account is left with. Debits equal credits, so the books still balance.
| Account | Debit | Credit |
|---|---|---|
| 1100 Accounts receivable | 9,000 US Dollar | |
| 4000 Revenue | 9,000 US Dollar | |
| Totals | 9,000 US Dollar | 9,000 US Dollar |
One account nets to zero across the entries and is not shown.
Why it is booked this way
Revenue is earned when the work is done. A consultancy that delivers in March and bills on April 3 earned March's revenue in March, and the right to bill is an asset at March 31.
When the invoice is issued, the unbilled balance becomes an ordinary receivable. The revenue is not booked again.
Common mistakes
- Waiting for the invoice to record revenue for work already delivered.
- Leaving unbilled balances in place after invoicing, so revenue is counted twice when the invoice is also booked to revenue.
Questions
- Is accrued revenue the same as a contract asset?
- Close to it. Under ASC 606 an unbilled receivable is a right to payment that is unconditional except for the passage of time — the invoice is a formality. If the right still depends on further performance it is a contract asset instead.
- Does accrued revenue appear in the AR aging?
- Usually not. Unbilled amounts are not yet due, so they are kept out of the aging until invoiced.
Terms on this page
Work with this entry
The tool that computes the schedule, the concept behind it, the entries that come next and the components that render them.
- Accounts receivable, explained for foundersMoney customers owe you for work you've delivered and invoiced but haven't been paid for yet. It's an asset.Doc
- Deferred revenue vs accrued revenueDeferred revenue is cash billed or received before the work is done, a liability; accrued revenue is work done before it is billed, an asset — they are the same timing gap in opposite directions.Compare
- Accrual vs deferralAn accrual records revenue or expense before the cash moves; a deferral records cash that has moved before the revenue or expense is recognized — accruals create receivables and payables, deferrals create prepaids and deferred revenue.Compare
- Journal entry for deferred revenueWhen an annual contract is invoiced up front, debit Accounts receivable and credit Deferred revenue. As each month of service is delivered, debit Deferred revenue and credit Revenue for that month's share.Entry
- Journal entry for a sale on accountFor a sale on credit, debit Accounts receivable and credit Revenue for the price; under a perpetual inventory system also debit Cost of goods sold and credit Inventory for what the goods cost. When the customer pays, debit Cash and credit Accounts receivable.Entry
- Journal entry for accrued expensesAt month-end, debit the expense and credit Accrued expenses for work received but not yet billed. Reverse the accrual on the first day of the next month, then book the vendor's bill as usual when it arrives.Entry
- AdjustingEntryFormTemplated by type. Auto-reverse defaults on for accruals.Component
- JournalEntryDebit and credit as two columns. No signed-column variant.Component
An illustrative company, not anyone’s real books. Every figure on this page is computed from the inputs in the example and posted by the same functions as the journal entry balancer. General information for US companies under US GAAP, not accounting or tax advice.