Why does a contract whose service period has ended still carry deferred revenue?

Deferred revenue is what's been invoiced minus what's been recognized, not a function of service dates. If a contract still carries deferred revenue after its service period ends, an invoice and its revenue don't net to zero. In multi-currency accounts, a common cause is an invoice converted to your home currency at a different exchange rate than its revenue.

Scenario

“We're in the middle of an audit. Our customer's total deferred revenue is £6,397.58, but only one of its contracts runs past March, and that contract shows £4,824.33. Where is the rest coming from?”

How Maxio calculates deferred revenue

Deferred revenue = amount invoiced − revenue recognized

A contract's balance reaches zero only when everything invoiced has been recognized. Its end date alone doesn't clear the balance, so a contract that ended months ago can still contribute to a customer's total.

Why an ended contract can keep a balance

In a multi-currency account, the invoice and its transaction each store an exchange rate. If the rates differ, the local-currency amounts still match, but the home-currency amounts don't. The difference stays on the contract as deferred revenue.

In this example, the invoice was recorded at a rate of 1, so its home value equals its local value. That GBP 1,573.25 was the missing part of the customer's total.

Find the source of the balance

Trace the balance from the customer's total down to each contract.

To find the source of the balance

1. Open the customer's Revenue tab and note the total deferred revenue.
2. Open each of the customer's contracts, including those whose service period has ended, and note each contract's deferred revenue.
3. On any contract with an unexpected balance, compare each invoice's exchange rate and home amount with its transaction's.

To see balances transaction by transaction, run the Deferred Revenue by Transaction report.

Correct the exchange rate

Important: Don't use an FX rounding adjustment to clear the balance unless your finance team confirms the invoice's home value is intentionally correct. A difference this size isn't standard rounding.

Important: Check your Maxio Core Closing Date first. Changes to an invoice dated before it don't sync back to Maxio Core, so correcting the rate in your accounting system won't clear the balance. If the invoice falls before the Closing Date, contact Maxio Support. For more, see Manage Closing and Transaction Lock Dates.

To correct the exchange rate

1. If the invoice synced from your accounting system, open it there and check its currency and exchange rate for the invoice date.
2. If the rate is wrong, correct it in your accounting system.
3. Let the update sync back to Maxio, then confirm the contract's deferred revenue has cleared.