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URL:  https://boards.fool.com/with-conventional-software-licensing-the-entire-34114526.aspx

Subject:  Re: Mid-month update. What I've done and why Date:  1/20/2019  4:18 PM
Author:  tamhas Number:  50697 of 57982

With conventional software licensing, the entire contract is recognized as revenue in the month of the sale. The exception to this can be is payments are staged and conditional, e.g., something like 30% up front, 40% on installation, and 30% after 90 days and acceptance. In such a case none of the revenue should be recognized until the 90 day acceptance and then all of it is.

While less common in software than construction, there is another flavor of this called completed contract which is used when the fulfillment takes place over more than one fiscal year. In it, simply stated, one estimates the percentage completeness and recognizes that much as revenue. Actual cash received may be more or less than this figure depending on the terms of the contract.

And yes, with any subscription sale, including SaaS, revenue is recognized pro rata over the subscription period regardless of the cash flow terms.
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