About Revenue Recognition and Deferred Income

Aptify supports Scheduled Transactions, which allow an organization to defer income recognition to a future date. Each Products record contains a Revenue Recognition Date field. If an order is marked as Shipped before the revenue recognition date, Aptify automatically credits the Product's specified Deferred Income account and creates a scheduled transaction that debits the Deferred Income account and credits the Sales account on the revenue recognition date.

Aptify also creates scheduled transactions automatically for subscription products whose revenue is recognized periodically over the life of the subscription. For example, for a 12-month subscription, Aptify creates 12 Scheduled Transactions records (one per month), and each record recognizes 1/12th of the subscription's revenue.  See About Scheduled Transactions and GL Accounts for more information.


Related Topics

Managing Accounting and Financial Systems Integration

Understanding Accounting and Financial Systems Integration

Managing General Ledger Accounts

Determining GL Accounts for Order, Payment, and Scheduled Transactions

Managing Shipping Charges

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