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Revenue Recognition - Subscription Fees

Hello - We charge our customers credit card via stripe the day they sign a contract. The amount charged is for the full month. So for example, a customer signs a contract to pay $1,000 subscription per month for the next 6 months. The customer contract was signed on 1/15/18, so their 6-month term becomes 1/15/18 to 7/15/18.

We do not invoice the customer. They are charged via stripe using the credit card information the customer provided.
When the cash ($1,000) hits our bank, I only should recognize $500 of that and defer the remaining $500 to a future period.

Currently, I am managing this on spreadsheets and posting a JE each month for the deferrals. However, I also know this isn't the most sustainable solution of this problem.

What are best practices here on GAAP compliant revenue recognition?

Thank you.


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