Revenue over time
When a service is delivered across a period, such as a subscription, a project or a course, revenue follows the performance and is recognised as the work is done, not all at once when it is billed or collected.
Revenue for the period = Total contract value × Share of the work completed in the period
Why it matters
A yearly subscription paid on the first day is earned month by month. Recognising it all on day one misstates profit for every month of the contract.
Where it appears in a CFO+ model
- In subscription, contract and project activities.
- In the balance sheet, where the unearned part waits as deferred revenue.
Learn the concept in the Academy
Activities where it shows up
No figures are published: a definition and a formula only.