Telecommunications

CAC Contract Cost — Monthly Amortization

Amortizing the capitalized customer acquisition cost over the contract period.

Account NameTypeDebit ($)Credit ($)
Commission Expense (Amortized)Expense (+)1.46-
Contract Costs — CAC AssetAsset (-)-1.46

💡 Accountant's Note

JOD 35 capitalized CAC over 24 months amortizes at JOD 1.46/month. This prevents the full subscriber acquisition cost hitting in month 1 of a 2-year contract, improving reported EBITDA margin.

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