Revenue Recognition and Payment Terms

Opstarts Pro users can configure different payment, collection and revenue recognition policies for each product. To view the impact of those policies, Pro includes two additional revenue view modes, Recognized Revenue and Bookings. Additionally, Pro reports include Deferred Revenue calculations. 

Configuring payment terms, timing, and revenue recognition is simple. Just open a product editor and you'll see Payment Terms and Rev Rec Offset options.

First, configure your product for whatever contract period you want (for example, quarterly here):

Then, set the following:

Payment Terms: How many months it takes to receive payment. (ie: for Net 60 Terms, enter 2 months here)

Billing Period: One-time for a lump-sum payment of the contract amount, monthly for monthly billing, etc.

Rev Rec Offset: If there is a delay before you start recognizing revenue due to delivery/acceptance periods, etc.

Rev rec period: Similar to billing periods, this is how you want your revenue recognition spread over time.

You can select Custom to create custom payment or recognition schedules, for example one payment of 50% followed by two 25% payments.


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