Questions Around Revenue Recognition for Service Contracts
I have several questions regarding revenue recognition for service contracts. We have the rule start date as the 1st of a given month which is the contract start date (has to be because our contractural agreement with our customer is for example the calendar year). Our GL calendars use to run 1st of the month to the last day of the month and the revenue for contracts was always recognized on 01-MON-YY. Now we are on a 4-4-5 GL Calendar so the dates of the accounting period could cross months (ie Mar 10 acctng period goes from 2-28-10 to 4-3-10.
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