About Revenue Recognition and Deferred Income

Aptify supports Scheduled Transactions, which allow an organization to defer income recognition to a future date. Each Products record contains a Revenue Recognition Date field. If an order is marked as Shipped before the revenue recognition date, Aptify automatically credits the Product's specified Deferred Income account and creates a scheduled transaction that debits the Deferred Income account and credits the Sales account on the revenue recognition date.

Aptify also creates scheduled transactions automatically for subscription products whose revenue is recognized periodically over the life of the subscription. For example, for a 12-month subscription, Aptify creates 12 Scheduled Transactions records (one per month), and each record recognizes 1/12^th of the subscription's revenue.  See About Scheduled Transactions and GL Accounts for more information.