SaaS
Annual Plan — Upfront Payment and Monthly Deferral
A customer pays for a full year upfront; revenue is deferred and released monthly.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Bank | Asset (+) | 1,188.00 | - |
| Deferred Revenue (Annual Plan) | Liability (+) | - | 1,188.00 |
💡 Accountant's Note
The full annual payment is a liability until service is delivered. Each month, $99 moves from Deferred Revenue to Subscription Revenue as the service obligation is fulfilled.
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Expert Analysis by Qusai Ahmad
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