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Subscription Recurring Fee in Acumatica - Integrator with Acumatica

  • 29 August 2023
  • 4 replies
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  • erin
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Hi All

We are currently implementing a new business module - Subscription Fee for customers. This means that we will receive upfront payment from customers. From a financial perspective, we need to split the subscription fee into 12 monthly installments to accurately capture revenue each month.

I'm not sure if anyone knows whether Acumatica can support this type of subscription fee module.

If not, is there an integrator that can support and integrate it into Acumatica?

I hope to hear from you soon."

 

 

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Best answer by sweta68 29 August 2023, 07:11

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Hi @erin,

I'm not sure if Acumatica has a built-in subscription process. However, in the past, I had the chance to work on the Deferral Module in Acumatica, which seems to resemble a subscription process.

Regards,
Sweta.

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 Hi Sweta

 Thank you for your reply.  May i know what kind of transaction that you using the deferral module ?

 

ricoybanez
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@erin 

You can use Recurring Entry in Accounts Receivable. You can spread the revenue on a Monthly basis.

Rico P. Ybanez
meganfriesen37
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Because you receive upfront payments the Deferred Revenue module would be the best fit.  You’d set up your subscription items with the required deferral type and set it to recognize revenue over the 12 months (or possibly 13 if you receive payment partway through the first month).  When you process an Invoice with that item the system automatically sets up the deferral schedule and posts the amount to a prepaid liability account (based on your configuration).  Then each month (either manually or scheduled) you would run the Deferral Recognition process which would take the current period’s portion of revenue from the prepaid liability and post it to the appropriate revenue account for the item.

Without the Deferred Revenue module, you could receive your items as prepayments and manually set up each of the recurring GL entries to move each month’s revenue from prepaid to revenue but that would be a lot more time consuming.

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