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rev rec for SaaS business

edited Dec 23, 2019 10:59PM in Accounting / ERP 2 comments

We sell monthly software subscriptions which can start on any date.  As a result I bill the first partial month as one sale, create a billing schedule for the full months (35 in a 3 year deal) and finally another partial month for the last month.  So I end up with 3 sales orders which I don't like.  I would simply create one sales order with a 36 month billing schedule but this over-states revenue in the first month and understates revenue in the last month.  Rev rec is my big issue here.  Any suggestions?

Thanks,
Steve

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