Iteras includes a feature that lets you recognise future revenue upfront. For example, if a customer has a six-month commitment, you may wish to recognise the revenue for those six months immediately rather than recognising it gradually as invoices are issued.
Availability. At present, this can be used via the API only by registering a commitment period with an end date. Iteras projects the subscription forward to estimate the revenue covered by the commitment and stores this with the commitment period to provide a stable data basis. You can then request the accrued-revenue data in the accounting export.
How it works
The export analyses each commitment period as follows:
At the start of the commitment period, the full amount is recognised as income and a set-aside balance is created.
Each subsequent invoice reduces that set-aside balance without generating new revenue, until the balance reaches zero—after which revenue is recognised as usual.
Credits move in the opposite direction (they increase the remaining set-aside).
When the commitment period ends—on schedule or early (e.g., cancellation)—a negative revenue entry is posted to clear any remaining set-aside so the books net to zero.
Example.
A six-month commitment is registered and the customer is invoiced 100 each month. The system estimates a total of 600. In month one, 600 is recognised; for the next five months, 0 is recognised. After month six, the commitment has been fully amortised and normal monthly recognition of 100 resumes.
Robust to changes.
The analysis handles timing shifts and invoice amount changes so that total recognised revenue always equals the total actually invoiced—no more, no less.