Managing Deferred Revenue and Expense Transactions in SAGE Accpac ERP

Revenue and Expense Deferrals for Sage Accpac ERP helps companies amortize maintenance or service related contract revenue over
the life of the contract. Revenue is recognized periodically based on the number of days of service the customer is entitled to in that period.
Companies get the advantage of compliance with the Public Company Accounting and Investor Protection Act of 2002 (also known as the Sarbanes-Oxley
Act of 2002). Although not specifically covered under the Act, non-public entities are also finding that bankers, investors, and acquisition candidates
are now conditioned to expect increased transparency and real-time disclosures, in effect placing a greater accounting and reporting burden on companies
who are not legally obligated to comply with the Act. Revenue and Expense Deferrals helps companies meet these additional demands.

A good example is the sale of a service contract with duration of one year or more. Under GAAP (generally accepted accounting principles) and the
Sarbanes-Oxley Act, it is prohibited to recognize the full contract value in the period of the sale. Instead, the amount should be recognized periodically,
depending on how many days of service the customer is entitled to in each period. Revenue and Expense Deferrals initially removes the whole revenue
amount from the General Ledger account it was posted to. Then, as each period nears its completion, the respective portion of revenue is posted
back to the original account. Thus, the revenue stream is spread over the life of the contract, instead of being posted fully at the beginning of
the contract.

The application can be configured to process transactions from any Sage Accpac ERP module, including 3rd Party applications, as long as they generate
a GL Batch and they support Accpac’s Transaction Analysis and Optional Field Creator module. Revenue and Expense Deferrals comes pre-configured
for General Ledger, Accounts Receivable & Order Entry. For more information, please contact us at

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