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Subscription Recurring Fee in Acumatica - Integrator with Acumatica


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  • Jr Varsity II
  • 103 replies

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."

 

 

Best answer by sweta68

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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6 replies

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  • Semi-Pro III
  • 229 replies
  • Answer
  • August 29, 2023

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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  • Author
  • Jr Varsity II
  • 103 replies
  • August 30, 2023

 Hi Sweta

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

 


ricoybanez
Jr Varsity III
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  • Jr Varsity III
  • 36 replies
  • August 30, 2023

@erin 

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


meganfriesen37
Captain II
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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.


  • Freshman I
  • 6 replies
  • December 21, 2023

Hi@meganfriesen37

If i run recognition for the first month, I want first month invoie for the recognition transtion will it generate invoice? 


meganfriesen37
Captain II
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Yes. When you set up the deferral code, make sure the “Start Offset” value is 0 if you’re using an “evenly by periods” type deferral code.  And also configure your desired recognition date.  The Prorated options generally start on the date of the invoice and the Flexible options start on whatever date you specify in the invoice.

Start Offset

The number of periods between the period of the transaction date and the start recognition period . The default value is 0. The following values can be specified:

  • A positive value: The recognition will start later than the period of the document date. For example, if you specify 1, the recognition will start one period later.
  • A negative value: The recognition will start earlier than the period of the document date. For example, if you specify –1, the recognition will start one period earlier.

    If you are generating a deferral schedule for a reversal document (a credit adjustment or a debit adjustment) and the specified deferral code has a negative value in the current box, this value will be ignored, because a deferral transaction for a reversing document cannot be earlier than the date of the reversing document.

This box is not available if the Flexible by Periods, Prorate by Days or Flexible by Days in Period option is selected in the Recognition Method

 

 


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