Revenue recognition is currently in early access. Reach out to the team to learn more.

You can configure our revenue recognition module to fit your accounting conventions and methodology in various ways.

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Chart of accounts mapping

You can rename the default ledger accounts used by Sequence to match the ones in your general ledger. Additionally, you can define multiple sub-accounts for a given ledger account, identified by a product or product category.

For example, you may want to track separately revenue deriving from fixed recurring fees and usage-based fees. To do so, you can remap the default Revenue ledger account to two separate sub-accounts, depending on the product pricing model.

Sequence automatically updates all journal reports to use the remapped accounts, to facilitate integrating Sequence-generated journals into your general ledger in your accounting system.

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Straight-line recognition rule

For in-advance charges, revenue is initially deferred and recognized over time as the service is delivered to your customer. The exact amount to recognize in a month however depends on the convention you use to distribute revenue linearly over time – for example, the same amount each day vs the same amount each month (regardless of the number of days in a month). You can select your convention for straight-line recognition from the configuration window.

JournalsInsights dashboard