SaaS
Setup / Onboarding Fee — Deferral
Collecting a one-time setup fee that must be spread over the expected customer lifetime.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Bank | Asset (+) | 500.00 | - |
| Deferred Revenue (Setup Fee) | Liability (+) | - | 500.00 |
💡 Accountant's Note
Under IFRS 15, a setup fee is not a separate performance obligation if it doesn't transfer a distinct service to the customer. It is deferred and recognized over the expected subscription period.
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Expert Analysis by Qusai Ahmad
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