Deferred Income

This page is still in process

Revenue and Deferred Revenue may be recorded differently depending on how your Region budgets financial activity as well as the size of your region. Therefore we have provided 3 general options to choose from for recording revenue and deferred revenue.

Deferred Revenue is money received for services which has not yet been earned and due to our fiscal year end being June 30th, we do need to take this into consideration.

For Example: New membership year registration is open in the spring, but the season isn't set to begin until fall. Meaning money is collected in spring through summer before June 30th (our year end) and before services are rendered (fall). These funds must be deferred until the next fiscal year for tax reporting.

Option 1 - Record as received

Consider this method if:

• the Region is fairly consistent on player count from year to year and you do not have offer a lot of different programs that would require more complex tracking of revenue and expense by program.

• expenses are fairly consistent from year to year
• This is a good option for smaller regions

Record the entire Sports Connect / Blue Sombrero (BSB) weekly deposit to 4005 Registration Fees (or sub-accounts) in QuickBooks as of the deposit date.

For the purposes of the tax return, the AYSO office will use reporting from Stack Sports to determine the correct amount of deferred revenue that should be reported. Our office will record this entry in our tax consolidation report and not in individual region QuickBooks accounts.

Option 2 - Fall only Region, no spring season

July 1 through February 28 (or when the new Membership Year opens for fall)

Record the entire Sports Connect / Blue Sombrero (BSB) weekly deposit to 4005 Registration Fees in QuickBooks as of the deposit date.

March 1 (or when the new Membership Year is opened for fall) through June 30th

Record the entire Sports Connect / Blue Sombrero (BSB) weekly deposit to 2510 Deferred Registration Fees in QuickBooks as of the deposit date.

On July 1 of the new year fiscal year, book a journal entry to reclass all deferred revenue to registration revenue.

Debit 2510 Deferred Revenue (entire balance from the balance sheet to bring it to zero)

Credit 4005 Registartion Revenue

For the purposes of the tax return, the AYSO office will use reporting from Stack Sports to determine the correct amount of deferred revenue that should be reported. Our office will record this entry in our tax consolidation report and not in individual region QuickBooks accounts. Regions are responsible for booking the journal entry above to recognize the revenue in the appropriate year. This is a change from previous year in NAP Online.

Option 3 - Full weekly Reconciliation

July 1 through end of Winter Registration

Record the entire Sports Connect / Blue Sombrero (BSB) weekly deposit to 4005 Registration Fees in QuickBooks as of the deposit date.

March 1 (or when the new Membership Year is opened for fall) through June 30th

Reconcile weekly deposits in Sports Connect to separate amounts by membership year.

Split the bank transactions in QuickBooks between 4005 Registration Revenue (Spring) and 2510 Deferred Revenue (New Membership Year, Fall)

On July 1 of the new year fiscal year, book a journal entry to reclass all deferred revenue to registration revenue.

Debit 2510 Deferred Revenue (entire balance from the balance sheet to bring it to zero)

Credit 4005 Registartion Revenue

For the purposes of the tax return, the AYSO office will use reporting from Stack Sports to determine the correct amount of deferred revenue that should be reported. Our office will record this entry in our tax consolidation report and not in individual region QuickBooks accounts. Regions are responsible for booking the journal entry above to recognize the revenue in the appropriate year. This is a change from previous year in NAP Online.

Need help to book a journal entry in QuickBooks Online? Watch the below video to learn more.

Link: QB Journal Entry Video