Prudent and accurate revenue recognition is in the heart of the accounting practice. Revenues and expenses should be matched with the delivered value, and this rule is adhered by almost all business entities throughout the world. Although the concept is easy to grasp intuitively, it is much more difficult to implement in practice. Companies involved in service and software industries receive most of their revenue, be it a subscription plan, membership due, software license or tuition fee, as an advance for services which have not been rendered yet. Given the tremendous number of transactions and complexity of recognition schedules, these businesses see the sophistication of their accounting needs evolving beyond the capabilities of their ERP infrastructure.
