> For the complete documentation index, see [llms.txt](https://docs.kick.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kick.co/common-workflows/revenue-recognition.md). # Revenue recognition Spread a sale across the months you earn it, instead of booking it all when you invoice or get paid. Revenue recognition spreads a sale across the time you earn it. A one-year subscription billed today shows on your Profit & Loss a month at a time. The rest waits on the Balance Sheet until those months arrive. It is available on Advanced or Enterprise, with the accrual ledger on. The accrual ledger records income when it is earned, not only when cash moves. Go to **Accounting** → **Revenue recognition**. **Policies** is where the pattern for a kind of sale is saved. **Recognition schedules** is each invoice or payment using that pattern. *** ### How a schedule starts A **policy** is the pattern. An annual subscription, a project paid up front, and a retainer can each have their own. You set it once, then apply it whenever that kind of sale comes in. Apply the policy to the invoice, the payment, or an amount you enter yourself when the work has started and the invoice is not in Kick yet. On the **Invoicing** or **Transactions** tab, open the **Accrual review** view. The **Recognition schedule** column is where you choose the policy. If a payment includes sales tax or a deposit, leave those amounts off the schedule. The schedule should cover only what you are earning. Kick posts the revenue across the whole term when you apply the policy, including future months, so your reports show those months before they arrive. A rule may wait until it is confirmed before those entries post. *** ### What you see in reports Months you have earned show as revenue on the Profit & Loss. Months still ahead stay on the Balance Sheet, as money collected but not earned yet. When the customer pays, that payment clears what they owe. It does not count the revenue a second time. Open **Reporting**, then **Rollforward** or **Waterfall**. The rollforward explains the balance still waiting. The waterfall shows each month, including the ones already posted ahead. While a schedule is running, it shows no status. It shows **Paused**, **Stopped**, or **Completed** when it is not. *** ### Hand this to your accountant Refer your accountant to [Revenue recognition](https://docs.kick.co/accountants/schedules/revenue-recognition) for the full setup: policies, milestones, journal entries, and how to change, pause, or stop a schedule. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.kick.co/common-workflows/revenue-recognition.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.