5060 · General ledger and close
Revenue recognition
Autessa Accounting handles revenue recognition (ASC 606) for revenue billed up front and earned over time. A schedule holds an invoice’s amount in Deferred Revenue and releases an even share into Revenue each month of service, with any rounding remainder in the final month so the total is exact to the penny.
The problem
An annual contract is not twelve months of revenue in January
Booking a $12,000 annual plan as January revenue makes January look great and the next eleven months look empty. Straight-line recognition matches revenue to the months you deliver the service, which is what investors and auditors expect.
What you get
- Create a schedule from an invoice: amount to spread, service start and service end.
- Revenue is held in Deferred Revenue (2300), a liability, and released into Revenue (4000).
- Straight-line by month across the whole service span.
- Rounding remainder lands in the final month so the sum is exact.
- Each month’s run is recorded, so re-running a month is a no-op.
- A progress bar shows months recognized out of the total.
How it works
How does revenue recognition work in Autessa Accounting?
Issue the invoice
Record the up-front invoice as usual.
Create the schedule
Pick the invoice, the amount to spread and the service dates.
Recognize each month
Run recognition for the period; each elapsed month’s share moves into Revenue.
Every option
Schedule fields
| Option | What it does |
|---|---|
| Invoice | The invoice being spread. |
| Amount to spread | Usually the invoice total. |
| Service starts and ends | The months the revenue is earned across. |
| Method | Straight-line by month. |
Permissions
Who can do what?
| Role | Can |
|---|---|
| Accountant and up | Create schedules and run recognition. |
Connected
How it connects to the rest of Accounting
FAQ
Questions about revenue recognition
Does Autessa Accounting do revenue recognition?
Yes. Straight-line monthly schedules hold revenue in Deferred Revenue and release each month’s share into Revenue, following ASC 606 for services delivered over time.
Is it exact to the penny?
Yes. The total is split evenly and any rounding remainder goes into the final month.
What if I run the same month twice?
Nothing changes. Each month’s recognition is recorded once.
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