Bookkeeping Examples¶
Target Audience: Users, Stakeholders
Introduction¶
This page walks through three complete subscription lifecycles, showing every journal entry that Payway creates and how account balances change over time. Each example follows one subscription from purchase to completion.
All examples use 25% VAT. Amounts are in SEK.
Example 1: Digital Subscription (Online Payment)¶
A customer purchases a digital subscription for 99 SEK/month using a credit card. The subscription uses time-based revenue recognition.
- Gross amount: 99.00 SEK
- Net amount: 79.20 SEK
- VAT (25%): 19.80 SEK
- Subscription period: 30 days
- Daily recognition rate: 79.20 / 30 = 2.64 SEK/day
Day 1 — Payment received¶
The customer pays via Adyen. Payway records a PSP receivable from the payment provider and deferred income for the subscription service obligation.
| Account | Debit | Credit | |
|---|---|---|---|
| DR | PSP Receivable (1580) | 99.00 | |
| CR | Deferred Income (2990) | 79.20 | |
| CR | VAT Output (2610) | 19.80 |
Why PSP Receivable, not Bank?
Online payments go through a payment provider (e.g., Adyen) who collects the money from the customer and later settles it to the publisher's bank account. The PSP receivable (1580) represents money owed by the payment provider. This is separate from Accounts Receivable (1510) which is used for customer invoices. The settlement from payment provider to bank is handled outside Payway — the difference between the PSP receivable and the bank settlement is the provider's fee.
Running balances after day 1:
| Account | Balance | Direction |
|---|---|---|
| PSP Receivable (1580) | 99.00 | Debit |
| Deferred Income (2990) | 79.20 | Credit |
| VAT Output (2610) | 19.80 | Credit |
| Revenue (3001) | 0.00 | — |
Days 1–30 — Revenue recognition¶
Each day, 2.64 SEK moves from deferred income to revenue:
| Account | Debit | Credit | |
|---|---|---|---|
| DR | Deferred Income (2990) | 2.64 | |
| CR | Revenue (3001) | 2.64 |
Running balances after day 10:
| Account | Balance |
|---|---|
| PSP Receivable (1580) | 99.00 |
| Deferred Income (2990) | 52.80 |
| VAT Output (2610) | 19.80 |
| Revenue (3001) | 26.40 |
Running balances after day 30 (period complete):
| Account | Balance |
|---|---|
| PSP Receivable (1580) | 99.00 |
| Deferred Income (2990) | 0.00 |
| VAT Output (2610) | 19.80 |
| Revenue (3001) | 79.20 |
All deferred income has been converted to revenue. The performance obligation is fully satisfied.
Day 31 — Renewal¶
The subscription renews automatically. A new payment of 99 SEK is charged and a new 30-day obligation begins.
| Account | Debit | Credit | |
|---|---|---|---|
| DR | PSP Receivable (1580) | 99.00 | |
| CR | Deferred Income (2990) | 79.20 | |
| CR | VAT Output (2610) | 19.80 |
Running balances after renewal:
| Account | Balance |
|---|---|
| PSP Receivable (1580) | 198.00 |
| Deferred Income (2990) | 79.20 |
| VAT Output (2610) | 39.60 |
| Revenue (3001) | 79.20 |
Revenue recognition continues daily at 2.64 SEK/day for the new period.
Variant: Refund on day 10¶
Instead of completing the full period, suppose a refund is issued on day 10. At that point, 26.40 SEK of revenue has already been recognised and 52.80 SEK remains as deferred income.
Since the full 79.20 SEK net amount is being refunded but only 52.80 SEK remains in deferred income, the difference (26.40 SEK) must be reversed from revenue:
| Account | Debit | Credit | |
|---|---|---|---|
| DR | Deferred Income (2990) | 52.80 | |
| DR | Revenue (3001) | 26.40 | |
| DR | VAT Output (2610) | 19.80 | |
| CR | PSP Receivable (1580) | 99.00 |
Running balances after refund:
| Account | Balance |
|---|---|
| PSP Receivable (1580) | 0.00 |
| Deferred Income (2990) | 0.00 |
| VAT Output (2610) | 0.00 |
| Revenue (3001) | 0.00 |
Everything nets to zero — as expected when a subscription is fully refunded.
Example 2: Invoice Subscription¶
A customer purchases a subscription via invoice for 297 SEK/quarter (3 months). The subscription uses time-based revenue recognition.
- Gross amount: 297.00 SEK
- Net amount: 237.60 SEK
- VAT (25%): 59.40 SEK
- Subscription period: 90 days
- Daily recognition rate: 237.60 / 90 = 2.64 SEK/day
Day 1 — Invoice sent¶
When the invoice is sent, a receivable is created for the amount owed and deferred income is recorded immediately. Revenue recognition begins from this date — it does not wait for the customer to pay.
| Account | Debit | Credit | |
|---|---|---|---|
| DR | Accounts Receivable (1510) | 297.00 | |
| CR | Deferred Income (2990) | 237.60 | |
| CR | VAT Output (2610) | 59.40 |
Running balances after day 1:
| Account | Balance |
|---|---|
| Accounts Receivable (1510) | 297.00 |
| Deferred Income (2990) | 237.60 |
| VAT Output (2610) | 59.40 |
| Revenue (3001) | 0.00 |
| Bank (1930) | 0.00 |
Days 1–90 — Revenue recognition¶
Each day, 2.64 SEK moves from deferred income to revenue (same as the online payment example):
| Account | Debit | Credit | |
|---|---|---|---|
| DR | Deferred Income (2990) | 2.64 | |
| CR | Revenue (3001) | 2.64 |
Day 20 — Payment received¶
The customer pays the invoice. The receivable is cleared and the bank account increases.
| Account | Debit | Credit | |
|---|---|---|---|
| DR | Bank (1930) | 297.00 | |
| CR | Accounts Receivable (1510) | 297.00 |
Note that this entry does not affect deferred income or revenue — those were established when the invoice was sent. The payment is simply the settlement of the receivable.
Running balances after day 20:
| Account | Balance |
|---|---|
| Accounts Receivable (1510) | 0.00 |
| Deferred Income (2990) | 184.80 |
| VAT Output (2610) | 59.40 |
| Revenue (3001) | 52.80 |
| Bank (1930) | 297.00 |
Day 90 — Period complete¶
Running balances after day 90:
| Account | Balance |
|---|---|
| Accounts Receivable (1510) | 0.00 |
| Deferred Income (2990) | 0.00 |
| VAT Output (2610) | 59.40 |
| Revenue (3001) | 237.60 |
| Bank (1930) | 297.00 |
Variant: Credit before revenue recognition¶
Suppose the invoice is credited in full on day 1, before any revenue has been recognised. The entire net amount is reversed from deferred income:
| Account | Debit | Credit | |
|---|---|---|---|
| DR | Deferred Income (2990) | 237.60 | |
| DR | VAT Output (2610) | 59.40 | |
| CR | Accounts Receivable (1510) | 297.00 |
All balances return to zero.
Variant: Credit after partial revenue recognition¶
Suppose the invoice is credited in full on day 30. At that point, 79.20 SEK of revenue has been recognised (30 × 2.64) and 158.40 SEK remains as deferred income.
| Account | Debit | Credit | |
|---|---|---|---|
| DR | Deferred Income (2990) | 158.40 | |
| DR | Revenue (3001) | 79.20 | |
| DR | VAT Output (2610) | 59.40 | |
| CR | Accounts Receivable (1510) | 297.00 |
The credit reverses both the remaining deferred income and the already-recognised revenue that is no longer earned. This proportional split follows IFRS 15 principles.
Running balances after credit:
| Account | Balance |
|---|---|
| Accounts Receivable (1510) | 0.00 |
| Deferred Income (2990) | 0.00 |
| VAT Output (2610) | 0.00 |
| Revenue (3001) | 0.00 |
Example 3: Print Subscription (Issue-Based Recognition)¶
A customer purchases a print newspaper subscription via invoice for 297 SEK/quarter. The subscription uses issue-based revenue recognition because the package has an accounting profile with recognition type set to "Issue-based".
- Gross amount: 297.00 SEK
- Net amount: 237.60 SEK
- VAT (25%): 59.40 SEK
- Subscription period: 90 days
- Issues in period (from distribution calendar): 66 issues
- Per-issue recognition rate: 237.60 / 66 = 3.60 SEK/issue
Day 1 — Invoice sent¶
The invoice entry is identical to the time-based example:
| Account | Debit | Credit | |
|---|---|---|---|
| DR | Accounts Receivable (1510) | 297.00 | |
| CR | Deferred Income (2990) | 237.60 | |
| CR | VAT Output (2610) | 59.40 |
Distribution days — Revenue recognition¶
Revenue is recognised only on days when an issue is distributed. On each distribution day:
| Account | Debit | Credit | |
|---|---|---|---|
| DR | Deferred Income (2990) | 3.60 | |
| CR | Revenue (3001) | 3.60 |
On non-distribution days (weekends, holidays), no revenue recognition entry is created.
Example: After week 1 (5 distribution days, Monday–Friday):
| Account | Balance |
|---|---|
| Accounts Receivable (1510) | 297.00 |
| Deferred Income (2990) | 219.60 |
| VAT Output (2610) | 59.40 |
| Revenue (3001) | 18.00 |
Compare this to time-based recognition, where 7 days × 2.64 = 18.48 SEK would have been recognised. Issue-based recognition ties revenue to actual deliverables.
After all 66 issues delivered — Period complete¶
| Account | Balance |
|---|---|
| Accounts Receivable (1510) | 297.00 |
| Deferred Income (2990) | 0.00 |
| VAT Output (2610) | 59.40 |
| Revenue (3001) | 237.60 |
All deferred income has been converted to revenue, distributed across the 66 issues rather than across 90 calendar days.
Summary: Key Differences Between Flows¶
| Online payment | Invoice payment | Print (issue-based) | |
|---|---|---|---|
| Payment entry | DR PSP Receivable (1580), CR Deferred + VAT | DR Accounts Receivable (1510), CR Deferred + VAT | Same as invoice |
| Payment received | Settlement handled outside Payway | DR Bank, CR Accounts Receivable | Same as invoice |
| Revenue recognition | Daily | Daily | Per distribution date |
| Credit / refund | IFRS 15 proportional split, CR PSP Receivable | IFRS 15 proportional split, CR Accounts Receivable | Same split logic |
Related Pages¶
- Bookkeeping Overview — key concepts and how it works
- Revenue Recognition — time-based and issue-based models explained
- Journal Entries — entry type reference
- Special Payments — reconciliation, reseller, and migration entries