@Navneet Singhal ,

1 When I run P&L on an accrual basis, it shows me the correct value of income in relevant months, but when I run the same p&l on a cash basis, then it doesn't change anything (I mean it should show the income in the month of receipt rather than accrual month).

A:  It appears that the difference between cash and accrual for revenue is Accounts receivable... and I would think that you don't have any Accounts receivable because all subscriptions are received 12 months in advance (perhaps someone at QB/Intuit who knows the exact calculation behind the Cash vs Accrual revenue will chime in to verify this).

2 Is my method correct ?

A:  Your explanation of deferred revenue accounting sounds correct.

3 Can I do one JE per month (rather than doing JE for every single invoice with different customer's) ?

A:  You could, but I think that may actually be more time consuming to maintain, especially if subscriptions start and stop at different times of the year.