Using PSA to invoice entire bill up front, then recognize the revenue over a year

We need to invoice a customer for $100,000 on day 1, and recognize the revenue over 12 months.

Let’s pretend it’s for a monthly subscription service that wants to be paid up front, but we must have an invoice to deliver to the customer so they can cut a PO.

With PSA, it appears the revenue is recognized when you invoice.

To invoice this in PSA, you need to do a prepayment invoice for the $100K, which will post as an on-account invoice.

This on-account invoice has it’s own posting profile, so you can direct it to another account, say XXXX, which would not be reported and NOT recognized as a sale. This account is different from where regular invoices post in account $$$$

However, when I do want to recognize say 1 month’s revenues, then somebody has to perform a manual general ledger entry moving $8,333.33 ($100K/12) from XXXX to $$$$. This way the $8,333.33 is recongized.

The manual process is straight forward, but does involve the accounting department in the GL module, a place you don’t want your Project Manager’s. I envision a relatively small modification to make this process easier on the operational side (Project Managers) in AX2009 with PSA.