Our new deferment method options allow you to define what calculation your revenue recognition reports use to distribute revenue across customers' service periods.
- Prorated monthly prorates revenue for partial months based on the number of eligible days left in the month. So if a customer signs up for a $100/mo plan on June 15th, $50 would be recognized for June. This is the calculation that our revenue recognition reports have been using to date.
- [NEW] Month by month will evenly distribute revenue by the full plan amount, independent of when a customer signs up. So if a customer signs up for a $100/mo plan on June 15th, $100 would be recognized for June.