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While some of these examples are more favorable than others, they are included to illustrate the flexibility of Aptify and the importance of selecting the correct product configuration.

• Example 1 - Annual Membership, No Deferral
• Example 2 - Annual Membership, Income Deferred Over 1 Period
• Example 3 - Annual Membership, Income Deferred Over 12 Months
• Example 4 - Periodic Membership, Income Deferred Over X Periods

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_example1 _example1

Example 1 - Annual Membership, No Deferral

This example reflects the sale of a $120 annual membership without income deferral.

Product Configuration

The product is not set up as a Subscription Item and, therefore, cannot be defined as a Deferred Income item. The Dues Product option is selected along with an appropriate Member Type.

Effects

• Revenue is recognized immediately.
• The membership cannot be renewed using the Subscription Renewal Wizard.
• Elapsed and remaining membership terms cannot be tracked.

GL Entries

When the order is marked as shipped, the following GL entries are created.

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_example2 _example2

Example 2 - Annual Membership, Income Deferred Over 1 Period

This example reflects the sale of a $120 annual membership with income recognized on an annual basis.

Product Configuration

The product is set up as a Deferred Income Subscription Item with a Subscription Type of Annual and one (1) Issue. The Dues Product option is selected along with an appropriate Member Type.

Effects

• The membership may be renewed using the Subscription Renewal Wizard.
• There is deferred revenue over a single period.
• Elapsed and remaining membership terms may be tracked.

GL Entries

When the order is marked as shipped, the following GL entries are created. By purchasing a quantity of one of this membership product, the results have the same affect as not deferring at all, like in Example 1. But if purchasing a quantity of three, there will be three scheduled transactions to recognize the income from the annual membership over the three year period.

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_example3 _example3

Example 3 - Annual Membership, Income Deferred Over 12 months

This example reflects the sale of a $120 annual membership with income recognized on a monthly basis. This example is the recommended product configuration for an annual membership product because it presents the most accurate way to account for earned revenue.

Product Configuration

The product is set up as a Deferred Income Subscription Item with a Subscription Type of Monthly and twelve (12) Issues. The Dues Product option is selected along with an appropriate Member Type.

Effects

• The membership may be renewed using the Subscription Renewal Wizard.
• There is deferred revenue on a regular basis, resulting in an accurate accounting for earned revenue.
• Elapsed and remaining membership terms may be tracked.

GL Entries

When the order is marked as shipped, the following GL entries are created.

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Eleven more sets of entries exist, one for each subsequent month (February, March, and so on) reflecting the annual total of $120.00.

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_example4 _example4

Example 4 - Periodic Membership, Income Deferred Over X Periods

This example reflects the sale of a $120 periodic membership, such as quarterly or semi-annually, with income recognized on the same periodic basis. This example is just like Example 3, except that it reflects a more generic configuration for non-annual membership products because it does not specify the exact number of membership periods.

Product Configuration

The product is set up as a Deferred Income Subscription Item with a periodic subscription type. The Dues Product option is selected along with an appropriate Member Type.

Effects

• The membership may be renewed using the Subscription Renewal Wizard.
• There is deferred revenue on a regular basis, resulting in an accurate accounting for earned revenue.
• Elapsed and remaining membership terms may be tracked.

GL Entries

When the order is marked as shipped, the following GL entries are created.

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