Amortized Revenue Recognition

Modules in this category

• Accounts Payable
• Accounts Receivable
• Amortized Revenue Recognition
• Budgeting Module
• Fully Integrated A/P
• G/L Interface Upload
• General Ledger
• Accounts Payable
• Accounts Receivable
• Amortized Revenue Recognition
• Budgeting Module
• Fully Integrated A/P
• G/L Interface Upload
• General Ledger

Module categories

• Data tools
• Database
• Day-to-day
• Document tools
• Email
• Finance
• Licensing
• Reporting
• Royalty
• Security
• System-wide

Category: Finance

Standard revenue recognition in ProFiles is performed on either a cash-basis or an accrual basis. If cash-based, revenue is recognized at the point of cash receipt only. If accrual-based, revenue is recognized at the point of invoicing, with the option to apply revenues based on Invoice Date or Invoice Accrual Date. For many companies, one of these models is adequate. In the case of companies that need a more sophisticated method which evenly distributes revenues over the full terms of their associated contracts, the Amortized Revenue Recognition Module is the answer. This module allows for allocation of revenues over the life of a contract guarantee using a straight-line distribution unless royalty earnings exceed that straight-line distribution. In that case it allocates revenue on an accelerated basis for royalties reported and on a straight-line basis for remaining guarantee. Additionally, it is configurable to handle the separation of Long-term and Short-Term A/R and the separation of Long-term and short-term Deferred Revenue for movement between Balance Sheet and P&L.