Set Up Transaction-Based Revenue Deferral for Memberships

Use this feature when revenue needs to be handled differently based on when a membership transaction is processed.

For example, members may renew in October, November, or December for the upcoming membership year. Even though payment is collected before the new year, revenue can be deferred and recognized in the next fiscal period.

Instead of applying the same deferral setup to every renewal, you can define rules based on transaction timing (batch date) and fiscal periods so revenue is recognized in the correct period.

• From the app menu at the top of the screen, click on Membership & Committees.
• In the left navigation menu, click on Setup.
• Under Membership, click on 2. Set up the various membership packages available for purchase.
• Either click on Create Membership Package on the top right or find the membership package if you want to edit an existing package by clicking on the $ icon on the right.
• Scroll down to Deferred Revenue Recognition and toggle to enable it on the right

• Then check Specify relative date ranges for revenue deferrals

  

• Scroll down to the next section, Relative Deferral Date Rules.

• To define our rules, select from the drop-down menu for each field.

  

• Scroll down to click Save Changes

Tip: Test your setup before using it live.

How Relative Deferral Date Rules Work

Relative deferral rules are applied based on the batch date of the transaction, not the invoice date. The batch date determines whether the transaction falls within a defined transaction window and which deferral rule is applied.

Each rule includes:

• A transaction window (when the transaction occurs)
• A deferral period (when revenue is recognized)

For example, if renewals processed in batches dated September through December should apply to the next membership year, you can configure the rule so revenue is deferred from January through December of the following year.