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Revenue Recognition for Services like Maintenance, Warranties, and Bundled Products in Acumatica

  • 28 August 2023
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Is anyone familiar with how Acumatica handles the following scenario?

We sell services such as "maintenance," "warranties," or "bundled products," where it's not possible to recognize the entire revenue at the point of sale.

For instance, let's consider a warranty that covers one year, priced at USD 1,200. The revenue from the sale should be distributed as USD 100 per month. what is the actual process in Acumatica system?

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Best answer by Laura02 28 August 2023, 12:27

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Hello,

Do You have the Deferred Revenue Module for Acumatica? Its purpose is to move portions of revenue from Deferred Revenue to Sales each month, to cover the months of service contracts.

Laura

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@pandachan48 

Hello, hope your doing well. For me the best way to handle this process in Acumatica is through Recurring Process in Accounts Receivable wherein you will process it every month so that revenue will be captured on a monthly basis spread over 12 months.

Just my insight.

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