[jgmart04]

Hey all,

A SaaS revenue recognition question.

If I make a sale for $20 in the middle of the month (let’s say the 9th of the month) and I place in the contract that I’ll bill you on the 9th of every month until contract termination,is it GAAP basis accounting to recognize only 2/3rds of the $20 sale in this current month? Or can we recognize the full $20 in this period?

It seems like an accounting nightmare to track every single customer’s billing terms. And I see many SaaS companies bill the same time each month. Regardless of when you signed up. They would just prorate your first billing cycle.

I looked at ASC 606 and didn’t readily see anything.

Thank you in advance!