Difference Between Unbilled Revenue And Unearned Revenue
U nbilled Revenue is created when the company earned the revenue against the goods / merchandise sold or services rendered to clients but neither the payment is received from clients nor the company issued or invoiced the bill to clients / customers while in case of Unearned Revenue , the company actually did not earned the revenue but, in fact, it received the payment from clients in advance and still the goods are not delivered or services rendered to them. Unbilled Revenue is a Current Asset and shown on Asset side of Balance Sheet while Unearned Revenue is a Current Liabilit y and goes on Liabilities & Equity side of balance sheet. The time period of unbilled revenue is usually short , i.e., 5 to 10 days, while for unearned revenue, it is within one year. Unbilled revenue is also known as Unbilled Accounts Receivable while Unearned Revenue is also called Revenue Received In Advance.