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Revenue Recognition - Not for the Faint of Heart

Automating Revenue Recognition Management: Contract Administration, Subscription, and Transaction Billing
Revenue recognition software exists today for software suppliers, with such functionality as that needed for managing contract data, subscription, and transaction-based revenue. This "benefits software companies and application service providers (ASPs) offering access to software as a service, Internet content providers charging for access on a transaction or subscription basis, Net marketplaces, and exchanges."

"The Rules of Revenue Recognition--Not for the Faint of Heart"
"When is a payment from a customer "revenue"? Obvious answer -- when a bill is paid. Software vendors and, more recently, ASPs sometimes learn the hard way that the answer is not so simple --and many find out only when their financial statements are audited. The interpretive guidance issues on revenue recognition issues are the "views" presented by the Office of the Chief Accountant within the U.S. Securities and Exchange Commission (SEC) in Staff Accounting Bulletin (SAB) 101. These "views" are used in determining the proper application of generally accepted accounting principles to revenue recognition in financial statements." Katherine Jones, Aberdeen Group