E-commerce

Monthly Subscription Box (Physical Goods)

Recognizing revenue for a 'Snack Box' or 'Beauty Box' once it is shipped to the subscriber.

Account NameTypeDebit ($)Credit ($)
Deferred RevenueLiability (-)30.00-
Sales RevenueRevenue (+)-30.00
Cost of Goods SoldExpense (+)12.00-
Merchandise InventoryAsset (-)-12.00

💡 Accountant's Note

Unlike SaaS, physical subscriptions must recognize both the revenue and the COGS at the moment the physical goods leave the warehouse.

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