Revenue Recognition (ASC 606 / IFRS 15)

How to Record Site Survey Fee Revenue

Records revenue for professional site assessments that are distinct from the subsequent equipment installation or construction.

Account NameTypeDebit ($)Credit ($)
CashAsset400.00-
Professional Services RevenueRevenue-400.00

💡 Accountant's Note

If the site survey provides a standalone benefit (e.g., a report the customer can use), it is treated as a separate performance obligation.

Practitioner & Systems Framework

💻 ERP Architecture

Setup separate SKU for site surveys to ensure independent revenue allocation.

⚠️ Audit Flags

Bundled contracts where the survey fee is waived or discounted significantly.

📄 Required Documentation

Completed site survey report and customer sign-off on the assessment.

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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.

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