Sometimes a transaction hits the books after its recognition period has already started. For example, a client pays for an annual software subscription in March, but the subscription term started in January. You need to recognize January and February's expenses, but you can't post journal entries to those closed months.
The Include catch-up period toggle handles this. It generates additional entries for the missed months, all posted in the recognition start month. This applies to Prepaid Expenses, Fixed Assets, and Deferred Revenue.
Understanding the recognition start date
The recognition start date should reflect when the first journal entry will actually post — not when the service or asset term began.
In the example above, the recognition start date is March (when the bill was recorded), not January. You would then set a catch-up period of 2 months so that January and February's expenses are recognized as catch-up entries in March. The regular schedule continues from March onward.
How to use the catch-up period
When adding a transaction to Accruals, open the recognition start date picker.
Turn on the Include catch-up period toggle.
Enter the number of catch-up months. If you're using the Actual days convention, you'll enter a catch-up start date instead.
Click Save. Double will generate catch-up entries — labeled "Draft (catch-up)" — for each missed period, all dated in the recognition start month. The regular schedule continues from there.
Key details
Catch-up entries use the same debit and credit accounts as your regular recognition entries.
The catch-up period cannot exceed the total schedule duration. For example, a 12-month schedule with recognition starting in March can have at most 11 catch-up months.
Catch-up entries appear in the schedule with a "Draft (catch-up)" status, making them easy to distinguish from regular entries.
You can edit or remove the catch-up period on an existing accrual, as long as the affected periods are not locked.
Examples
Prepaid Expenses
A client pays $24,000 in February for a Salesforce subscription running January through December. Set the recognition start date to February, with a catch-up period of 1 month. Double will post a $2,000 catch-up entry for January in February, plus February's regular $2,000 entry, and continue with $2,000/month through December.
Fixed Assets
A piece of equipment is purchased in March but placed in service in January. Set the recognition start date to March, with a catch-up period of 2 months. Double will post catch-up depreciation entries for January and February in March, then continue the regular depreciation schedule.
Deferred Revenue
A client invoices a customer in April for a subscription running February through January. Set the recognition start date to April, with a catch-up period of 2 months. Double will post catch-up revenue entries for February and March in April, then continue recognizing monthly through January.