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- Revenue Recognition
- Who it's for
- Software subscriptions
Software subscriptions
A software company can use Products with Subscription or Seat units and Recurring revenue type. The Revenue Accountant links each customer schedule to its product and contract reference, while Billing Operations Manager connects invoice lines to the relevant schedule. The team compares the service period on the invoice with the schedule dates during period review.
How Revenue Recognition is set up for you
Term
Revenue Accountant checks a subscription schedule against the customer contract start and end dates.
Billing interval
Billing Operations Manager compares invoice line service dates with the subscription term and linked schedule.
Deferred amount
Finance Approver reviews the recognized and deferred balances when a contract changes midterm.
A software company can use Products with Subscription or Seat units and Recurring revenue type. The Revenue Accountant links each customer schedule to its product and contract reference, while Billing Operations Manager connects invoice lines to the relevant schedule. The team compares the service period on the invoice with the schedule dates during period review.
Pilot one subscription product, a customer with a contract spanning a reporting boundary, a linked invoice line and a billing run. Compare recognized to date and deferred balance before the run is validated. Keep the customer contract in the evidence store and reconcile the final posting with the company ledger.
Use Active Revenue Schedules to inspect contracts spanning the period and Draft Invoices Pending Send to check the line dates before billing. Billing Runs Open for Validation then shows the Draft cycle. Billing Operations Manager compares its linked invoices and totals before using Advance Billing Run; the receipt confirms the result.
Agree how renewals and midterm amendments affect the contract reference and schedule dates. Give Revenue Accountant responsibility for checking recognized to date after an amendment, and Billing Operations Manager responsibility for checking any invoice line that still points to the earlier period.
Features to start with
Roles on the team
- Revenue Accountant
- Maintains customer revenue schedules and reviews recognized and deferred amounts.
- Billing Operations Manager
- Owns billing runs, invoice preparation and validation.
- Finance Approver
- Decides plan approvals and reviews documented billing and schedule decisions.
Set up Revenue Recognition your way.
Start free, then use Proto to change fields, steps and approvals before your team goes live.