SaaS

Sales Commission — Monthly Amortization

Amortizing the capitalized sales commission over the expected customer lifetime.

Account NameTypeDebit ($)Credit ($)
Sales Commission Expense (Amortized)Expense (+)417.00-
Contract Costs — Commissions (Asset)Asset (-)-417.00

💡 Accountant's Note

A $15,000 commission capitalized over a 3-year customer lifetime is amortized at $417/month. This prevents front-loading expenses in the month of the deal.

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