Alternative Revenue Recognition Subscription Services

Service subscription capabilities  Service subscriptions with clearly defined subscription periods  Indexation adjustment of subscription prices  Accrual mechanism for distributing revenue recognition  Relation to service agreements can be established through projects

Distributing income with accruals 3

Managing service subscriptions  A service subscription is established to manage the recurring revenue stream  Fee transactions are created in accordance with the agreed-upon invoice frequency  Posting and invoicing of fee transactions  Accruals can be done for a single accrual period or a longer accounting period (e.g., monthly/quarterly)  A service subscription can cover the work included in a service agreement (e.g., repetitive maintenance) if the two entities are associated with the same project 4

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