Fusion Receivables: Short Term and Long Term Deferred Revenue Accounting
SummaryFusion Receivables: Short Term and Long Term Deferred Revenue Accounting
Client sells a service contract for 2 years.
AR need to book their short term (within 12 months) deferred revenue to a specific account 'X', and book their long term deferred revenue in a different account 'Y'. Below Example in Sep-19.
|Service Contract - 2 years = $12000|
|Year 1||Year 2|
After a month, Oct-19, 12 months deferred revenue needs to get re-calculated, which means,
Oct-19 Deferred Revenue moves into Recognized Revenue