Revenue Recognition for Licensing

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Posted on by spena

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Hi,

We sell software licenses to customers. We send the customer an invoice for the entire amount of the license up front, and they send cash.

What we are looking to do is run a batch job each month to recognize revenue each month that moves dollars out of Deferred Revenue and in to Revenue. The problem is we do not want to generate a billing invoice, because the invoice will stay open on the customers account, since payment was already received and applied to a prepayment invoice.

We are not budgeting for any costs on the project, only revenue.

Are there any suggestions on how we could handle this in Project Accounting?

Thanks,

Steve

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