Sage 100

Interesting: http://www.dsdinc.com/enhancement/sodr-deferred-revenue-posting

The write up either doesn't make sense or I am interpreting it incorrectly. I would record maintenance contracts or other ""prepaid"" as follows: Customer prepayment: Debit cash Credit deferred revenue Revenue recognition (periodically): Debit deferred revenue Credit sales Quote from the link: ""The accounts that are posted to are as follows: Debit to the Revenue Account for that Item's Product Line Credit to the Adjustment Account for that Item's Product Line"" What????? A debit to revenue? Huh? I see consulting $$$$$$$ trying to unravel that mess. Also, It seems to me you could account for deferred revenue using a separate product line and using a repeating order.

It looks like this automating the monthly entries. Many years ago I had a publishing company client that sold annual subscriptions. Set them up with a process to initially process the subscription payment then use recurring invoices each month to relieve the prepayment and recognize revenue. Simple, but it worked well.