SaaS Knowledge Center
Explore our verified library of SaaS transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
Annual SaaS Subscription Revenue
Recording a bulk annual payment for a software subscription under the accrual basis.
Monthly SaaS Revenue Recognition
The adjusting entry to recognize monthly revenue from a previously collected annual subscription.
Amortization of Prepaid Software Licenses
Monthly adjustment to recognize the expense of an upfront software subscription payment.
Capitalizing Internal Software Development
Recording internal labor costs as an intangible asset during the application development stage.
Annual Software Subscription Renewal
Paying for another year of a mission-critical SaaS tool.
Employee Stock-Based Compensation
Recognizing the monthly expense for employee stock options or RSUs.
Software Research Phase (Expensing)
Recording costs for the initial research phase of a new software feature.
Trademark & Domain Registration
Capitalizing the legal and registration costs of a new brand or web domain.
Monthly Cloud Hosting (AWS/Azure)
Recording the pay-as-you-go expense for server infrastructure.
Recording App Store Sales (Net of 30% Fee)
How to record revenue from Apple (App Store) or Google Play when they deduct their commission before payout.
Free Trial / Freemium Server Costs
Allocating the hosting costs of 'free' users to marketing/acquisition expense.
Post-Paid API Usage Costs (OpenAI/Twilio)
Accruing the expense for API credits used during the month before the bill is actually paid.
Issuing a Subscription Credit Note
Granting a customer a credit for a 'paused' month or as a customer service gesture.
Capitalizing Software Development Costs
Moving internal coding costs from expenses to assets once technical feasibility is met (IAS 38).
Write-off of Obsolete Internal Software
Removing the remaining book value of a software tool that is no longer being used by the company.
Monthly Amortization of Reserved Instances
Monthly adjustment for an upfront 1-year 'Reserved Instance' payment for AWS or Google Cloud.
Prorated Subscription Upgrade
Recording the additional revenue when a customer moves from a Basic to a Premium plan mid-month.
Prorated Refund for Churned Customer
Issuing a partial refund to a customer who cancelled their annual plan halfway through.
User Referral Credit (Non-Cash)
Recording a $20 credit given to an existing user for referring a friend, to be used on their next bill.
Need a specific SaaS entry?
Our team is constantly updating the hub. If you can't find what you need, suggest a new entry below.
Contact Expert