Flexible, reliable, real-time revenue recognition that automates reporting (goodbye spreadsheets!) and streamlines ASC 606 & IFRS 15 compliance.
The short answer is...you have to. With ASC 606 and IFRS 15 in full effect for 2019, all global businesses must recognize and report revenue in a way that complies with the new accounting standards. Instead of recognizing revenue upfront, you now have to recognize it as performance obligations are fulfilled.
The Revenue Report automatically calculates your recognition schedule by using the transaction price and billing frequency of products to distribute revenue evenly across the service period.
Subscriptions don’t always start or renew at the beginning of the month. But don’t worry, partial months use daily calculations for extreme accuracy that you rely on.
For example, a $99 renewal on April 19th will recognize $39.60 for April.
Deferred revenue refers to revenue that has not yet been “earned.” This report represents your future obligation to deliver products and/or services in the future.
Deferred revenue will decrease over time as it converts from a liability to income (i.e. recognized revenue).
Our reports provide a line item breakdown of all products/components within your product catalog, and allow you to:
If you have have any questions about how revenue is being recognized or deferred, you can export the underlying revenue recognition data for all transactions during any given period.
