Processing deferred income transactions

Step 1: Running the Deferred Income Detail report

A critical step in processing deferred income transactions is verifying the deferral term before running the general ledger export. The Begin Date on which the deferred income transaction goes into effect and the Paid Thru ending date (when the term expires) determine the deferral term for any single line item.

To view each transaction, you must run the Deferred Income Detail report. To run the report, do the following:

Go to Reports > Accounting reports.
Select the Deferred Income Detail report, then click Run.
Enter the Begin Date and End Date range for the deferred income transactions you wish to review.
From the Exported drop-down, select one of the following:
- Exported only - Includes transactions that have been exported to the GL.
- Non-exported only - Includes transactions that have not yet been exported to the GL.
- All - Includes all transactions.
Click Refresh.
Verify the accuracy of the data and make modifications as needed before running the general ledger export.

Step 2: Generating the export file

iMIS processes individual deferred income transactions through the general ledger export. To generate a general ledger export file, see Exporting general ledger transactions.

Note: Cancellations, reversals, or adjustments of previously deferred billing product income should be processed with the appropriate beginning period and term. The general ledger export procedure will automatically adjust the deferred income matrix for these transactions in iMIS and create the necessary entries to adjust the deferred income and earned income amounts in the General Ledger.

Step 3: Running the Deferred Income Matrix Summary report

As iMIS processes individual deferred income transactions through the general ledger export, the deferred income amounts are posted to a summarized Deferred Income Matrix Summary report (Reports > Accounting reports). This report keeps track of the total balance in the deferred income accounts, which are divided into the following summary columns:

Deferred Account - Deferred income account number
Income Account - Income Account number
Effective Date - (for example, month-year) Date to begin income recognition
Term - (for example, number of months) Time frame over which to spread income
Original Amount - The original amount of currency in the deferred account
Transferred - Amount transferred from the deferred account to the income account
Remaining - The amount remaining in the deferred account

Viewing the Deferred Income Matrix Summary

A row is created for each combination of the provided columns. From this structure, iMIS determines and generates the necessary entries to transfer amounts from deferred income to regular income.

Understanding The GL Export & Deferred Income Matrix

The general ledger export procedure performs the work related to deferred income processing as follows:

Creates a deferred income entry to credit the deferred income account instead of the regular income account for the full amount for all deferred income transactions
Updates the deferred income matrix table for the combined dollar amount of the transactions involved
Analyzes the deferred income matrix and creates the appropriate transfer entries to recognize income

Note: In some cases, transfer entries work in a catch-up mode. For example, if late cash-basis subscription payments are received and processed after the subscription term has begun, iMIS immediately recognizes the full amount due to be recognized as the accounting period being processed (that is, if a payment entry is recorded six months after a subscription started, iMIS generates an entry to recognize or transfer one-half (6 , 12) of the subscription income amount).

The following is an example of a general ledger export file. Lines 3 and 4 create a deferred income entry to credit the deferred income accounts, and lines 5 and 6 analyze the deferred income matrix and create the transfer entries to recognize income:

01/01/2023 1-1100 PAY,DEMO-DUES-PAY        	         1200.00
01/01/2023 1-1200 AR,DEMO-MEETING-AR      	          500.00
01/01/2023 1-2100 DIST,DEMO-DUES-BASIC   	     -1200.00
01/01/2023 1-2200 DIST,DEMO-MEETING-TECX/MAIN -500.00
01/01/2023 1-4200 Deferred Income Transfer   		       -100.00
01/01/2023 6 1-2100 Deferred Income Transfer   		        100.00

Understanding how iMIS calculates transfer entry amounts

After all deferred income transactions for a GL Export run have been posted to the Deferred Income Matrix, iMIS performs a final step to calculate how much of the remaining balance should be transferred to income as of the month and year represented in the GL Export End Date.

For each active Deferred Income Matrix row (where the Original Amount does not yet equal the cumulative amount already transferred), iMIS calculates the total amount that should have been transferred from the original amount as of the GL Export End Date's month and year. It then subtracts the amount already transferred. The difference becomes the transfer entry amount for that GL Export run.

Since this calculation is performed at the matrix summary level (not at the individual transaction level), it is the most reliable method for ensuring accuracy, even when transactions arrive late or in batches. In rare cases, the result may be a net reversal if the cumulative amount already transferred exceeds the newly calculated expected total.

Understanding when transfer entries are blocked: Backdated GL export runs

iMIS always tracks the latest GL Export End Date month and year across all previously processed runs. If a new GL Export is run with an End Date that falls before that latest month and year, iMIS treats it as a backdated GL Export run and blocks the creation of transfer entries for that run.

This block is a deliberate safeguard. Without it, running a backdated GL Export would reverse transfer entries that were correctly calculated and posted in a more recent month, which would produce incorrect results in the General Ledger.

Example: Why the block is necessary

Suppose a Deferred Income Matrix row has a Begin Date of February 1, 2026, a 12-month term, and an original amount of $120.00 (expected monthly transfer: $10.00).

Run #	End Date	Transfer Created	Cumulative Transferred	Remaining
1	Feb 28, 2026	$10.00	$10.00	$110.00
2	Mar 31, 2026	$10.00	$20.00	$100.00
3 (backdated)	Feb 28, 2026	$0.00 - blocked	$20.00	$100.00

If Run #3 were allowed to calculate transfers, the already-posted March entry from Run #2 would be reversed, incorrectly reducing the cumulative total back to $10.00. The block prevents this.

Understanding when blocked transfers are reconciled

Once a new GL Export is run with an End Date month and year that equals or exceeds the previously recorded latest End Date, iMIS resumes the creation of transfer entries in what is referred to as catch-up mode.

In catch-up mode, iMIS calculates the full cumulative transfer amount that should have occurred through the current month and year, subtracts the amount already transferred, and posts the difference as a single catch-up transfer entry. This means a single GL Export run may appear to contain a larger-than-expected transfer amount — it is catching up for all prior runs where transfers were blocked.

Example: Catch-up mode in action

Continuing from the example above, suppose runs #4 through #16 were all backdated February exports (all blocked), and run #17 is the next March export:

Run #	End Date	Transfer Created	Notes
4 - 16	Feb 2026	$0.00 each	Blocked - backdated runs
17	Mar 31, 2026	$20.00	Catch-up: covers Feb + Mar transfers

The Deferred Income Audit Trail report would show $10.00 projected for both February and March; but in actuality, both months' transfers appeared together in Run #17. This is expected and correct behavior, not a data error.

Note: If you notice that a GL Export run contains a substantially larger deferred income transfer amount than expected, it most likely represents catch-up entries from one or more prior months where transfer creation was blocked due to backdated runs.