SaaS

Mid-Term Upsell — Contract Modification

A customer upgrades from Basic to Enterprise mid-contract; the contract is modified to reflect the new price.

Account NameTypeDebit ($)Credit ($)
Deferred Revenue (Old Plan)Liability (-)400.00-
Deferred Revenue (New Plan)Liability (+)-900.00
Cash / Receivable (Top-up)Asset (+)500.00-

💡 Accountant's Note

A contract modification that adds distinct services is treated as a new contract. The old deferred balance is closed and a new one opened at the upgraded price. The customer pays the incremental difference.

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