I have a client who has annual invoices for maintenance contracts, then rather than recognizing 100% of this as revenue at the time of the invoice, they wanted to take 1/12th of it per month, for 12 months. We set up service invoices in AR and instead of crediting revenue, we credited deferred revenue (a liability account).
Then we used the Fixed Assets module to amortize the revenue. Instead of an accumulated depreciation account getting a credit every month, we made it a revenue account. Instead of a depreciation expense getting a debit every month, we made it a deferred revenue account.
They have several hundred contracts, and it works great.
Software Sales, Training, Implementation and Support for Exact Macola, eSynergy, and Crystal Reports
Then we used the Fixed Assets module to amortize the revenue. Instead of an accumulated depreciation account getting a credit every month, we made it a revenue account. Instead of a depreciation expense getting a debit every month, we made it a deferred revenue account.
They have several hundred contracts, and it works great.
Software Sales, Training, Implementation and Support for Exact Macola, eSynergy, and Crystal Reports