SaaS
Multi-Year Contract — Upfront Payment (Deferral)
An enterprise client pays for 3 years of SaaS access upfront at a discounted rate.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Bank | Asset (+) | 30,000.00 | - |
| Deferred Revenue — Current (Year 1) | Liability (+) | - | 12,000.00 |
| Deferred Revenue — Non-Current (Years 2-3) | Liability (+) | - | 18,000.00 |
💡 Accountant's Note
Under IFRS 15, the deferred revenue is split between current (due within 12 months) and non-current. The full $30,000 is earned over 36 months at $833/month.
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Expert Analysis by Qusai Ahmad
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Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.