SaaS
Sales Commission Capitalized (IFRS 15 / ASC 606)
Capitalizing sales commissions as a Contract Cost asset amortized over the customer lifetime.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Contract Costs — Commissions (Asset) | Asset (+) | 15,000.00 | - |
| Commissions Payable | Liability (-) | - | 15,000.00 |
💡 Accountant's Note
Under IFRS 15, incremental costs to obtain a contract (like sales commissions) must be capitalized if they are expected to be recovered. They are then amortized over the expected customer lifetime (e.g., 3 years).
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
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.