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since ‎02-15-2016
‎02-15-2016
dsizzle27
dsizzle27
Newly Enrolled

Has anyone figured out how to start revenue recognition before invoicing?

by Newly Enrolled dsizzle27 in Finance
‎02-15-2016 01:12 PM
‎02-15-2016 01:12 PM
I have situations, for instance in a multi-year subscription, where I need to send invoices after revenue recognition needs to begin.  As an example, I have a three year contract that contains billing terms of $12,000 the first year, $24,000 the second year and $36,000 the third year.  My accounting requirement is to recognize an even amount each each month over the term so I want to recognize $2,000 revenue in the first month.  I can't send my customer the $24k and $36k invoices, yet.  Essentially, the revenue is booked before it is billed.  Any thoughts would be greatly appreciated.  My current approach is to generate all three invoices and put the last two in a drawer.  Clearly, doesn't scale well. ... View more