Unbilled revenue
Unbilled revenue is revenue a business has earned but not yet invoiced, recorded as an asset until the invoice is issued.
Also called accrued revenue.
It is the mirror image of deferred revenue. Deferred means billed but not earned; unbilled means earned but not billed.
Usage-based businesses carry it every month by construction, because consumption in the final days of a period is earned before the period closes and the invoice is generated.
Common questions
- What is the difference between unbilled revenue and deferred revenue?
They are mirror images. Unbilled revenue has been earned but not yet invoiced and is an asset. Deferred revenue has been invoiced and collected but not yet earned and is a liability.
- Why do usage-based businesses always carry unbilled revenue?
Because consumption in the final days of a billing period is earned before the period closes and the invoice is issued, so there is always earned revenue awaiting invoicing at any month end.