What this explainer covers
Several of the Financials reports let you view revenue two ways, using a Paid / Accrued control. The two views answer different questions and can show different totals for the same period. This guide explains the difference so the individual revenue guides can link here instead of repeating it.
Accrued is revenue as it was raised
Accrued counts each invoice on the date of the invoice, for its full amount, no matter when (or whether) it was actually paid.
Every invoice is counted once, on its invoice date.
The full invoice total is included, even if the client hasn't paid yet or is paying in installments.
Voided invoices, and invoices marked to be ignored on reports, are left out.
Use Accrued to answer "how much did we bill in this period?"
Paid revenue is when payment is actually received
Paid counts money on the date each payment was received, for the amount of that payment.
An invoice paid in several installments is split across the dates of those payments.
Refunds and write-offs are not counted as income in the Paid view.
Use Paid to answer "how much money did we actually take in this period?"
Worked example: one invoice paid across two months
A client is invoiced $300 on 31 January and pays it in two installments: $100 on 31 January and $200 on 5 February.
View | January | February |
Accrued | $300 (the whole invoice lands on its 31 January invoice date) | $0 |
Paid | $100 (the payment received in January) | $200 (the payment received in February) |
Both views total $300 across the two months — they just place the money in different periods. Accrued puts it all in the month the invoice was raised; Paid follows the cash as it comes in.
If part of that invoice were later refunded or written off, the refunded or written-off amount would still appear in Accrued (the invoice was still booked) but would be removed from Paid (that cash isn't income).