Prepayments and Deferred Revenue

You'll often hear us Accountants referring to things like adjusting for timing differences or prepaying costs or deferring revenue. This is often interpreted as "massaging the numbers", but, believe me, there is a very reasonable theory behind it. These sort of adjustments can be made for a number of reasons, but the main underlying concept is that adjustments have to be made to ensure that the transaction is reflected in the period to which it relates.

In this post, I'll explain how prepayments and revenue deferrals work together with the DAX measures that drive these calculations.