Sales as well as the cost of the associated sales can be deferred using the Deferred Revenue process.The deferred revenue formula caters for the varying recognition rates over time relative to the invoice period. Initially this is used for on line product subscriptions where 50% of the revenue needs to be recognised in the invoice period, eleven months of nothing then the remaining 50% evenly over the next 12 months.

The recognition formula in the subscription module calculates the deferred revenue as soon as the subscription turns into “gratis”. This is needed as subscriptions are dealt with as part of specific contracts therefore each subscription order should not defer/recognize revenue from that point.

Contents

1 Invoice based
2 Subscription based
3 Maintenance
4 Processing

Invoice based

Subscription based

Maintenance

Processing