Medical Devices & Laboratory Services

How to Record Genetic Counseling Revenue Allocation

Revenue recognition for bundled genetic testing services that include both the laboratory diagnostic and a professional genetic counseling session.

Account NameTypeDebit ($)Credit ($)
Accounts Receivabledr1,200.00-
Revenue - Lab Diagnostic Servicecr-950.00
Deferred Revenue - Genetic Counselingcr-250.00

💡 Accountant's Note

When a lab test and counseling are sold together, revenue is allocated based on Standalone Selling Price (SSP). Revenue for the test is recognized when results are delivered, while counseling revenue is deferred until the session occurs.

Practitioner & Systems Framework

💻 ERP Architecture

Requires multi-element arrangement (MEA) functionality to auto-split the invoice based on SSP rules.

⚠️ Audit Flags

Large balances of aged deferred revenue where counseling sessions were never scheduled or performed.

📄 Required Documentation

Evidence of SSP for both testing and counseling, and logs of completed counseling sessions.

Did you find the exact entry you were looking for?

Automate this entry with the JEH Accounting Suite

Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.

No Subscriptions. Own your data.

QA

Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

LinkedIn Profile

Discussion & Community Questions

Loading comments...

Leave a comment (No sign-up required)