Professional Services
Contract Acquisition Cost — Monthly Amortization
Releasing one month of the capitalized sales commission over the service contract term.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Sales Commission Expense (Amortized) | Expense (+) | 250.00 | - |
| Contract Acquisition Costs (Asset) | Asset (−) | - | 250.00 |
💡 Accountant's Note
A JOD 6,000 capitalized acquisition cost over a 24-month contract amortizes at JOD 250/month. This prevents front-loading the commission expense in month one and matches cost to the revenue stream it generated.
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