Performance obligation policies
Policy | Details |
---|---|
Immediate | You wish to recognize the revenue of the PO immediately: as soon as the invoice is generated. Journal entries are created. |
Deferred | The invoice is generated. However, the revenue is considered deferred or unearned. Deferred revenue is a liability. It is recognized proportionally as revenue as you deliver the promised service or product to your customer over time. |
Unbilled | The invoice has not been generated. However, the service or product has been delivered. This is applicable in postpaid use cases only. |
Updated about 9 hours ago