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Bookings & revenue
Revenue recognition for sales
Revenue is recorded as the service is delivered, not when signed or paid. A subscription is spread over its term; an implementation is recognised when done.
Owned by: Senior sales analystTest band: Senior sales analyst
In practice
A rep closing a $120k annual deal on the last day of the quarter brings $120k of bookings and roughly nothing in that quarter's revenue. Sales should know this before finance says it.
The kind of thing the test asks
- A rep closes a $240k annual subscription on the last day of Q2. Q2 revenue from it is…
More in bookings & revenue
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