What is postponed credit?

Delayed credit is the income that the company has accepted, but remains unleashed as a real income for some time. Delayed credit is often related to some type of compensation received as backups for the project. Rather than recording an advance as income, the payment is listed as a postponed credit and is not recorded as income until the project has been completed.

One of the main advantages of using a delayed credit classification is that it keeps accounting records in balance. Revenue is usually related only to income that is made in some way. Since funds in a deferred credit must still be obtained, it is difficult to take into account the amount of the deposit in the same way as the payment for an excellent invoice.

Another practical reason for using a deferred credit classification is that undeserved income may eventually be necessary to return the client. For example, if the consultant gathered the revenue a predeterpring project, but eventually did not use the entire progress in relation to the completed tasks, the loan balance would beReturned to the customer. At this point, the consultant would enter the balance of a postponed credit that was actually earned as income in accounting records and handed over the unknown balance to the customer.

The retainers are also often classified as a delayed credit. As with the preliminary counseling fee, the detainener is not considered to be earned income until the services are provided. As the customer account's account fees connect, the deferred credit balance is slowly decreasing until the staff is in full. If the project is completed before the holder is exhausted and the undeserved part of the received income is returned to the client.

In the accounting records, the postponed credit will appear as a liability until then and the amount of the loan is considered to be earned. At this point, the delayed credit can be reclassified as earned income and appropriately in the accounting bookHách. Delayed credit is sometimes referred to as delayed income or delayed income, depending on the local custom.