Should I match commission expenses to related revenue or book them when sales rep is actually paid?

Should I match commission expenses to related revenue or book them when sales rep is actually paid?

1

Selling annual software subscriptions. Customer pays full year upfront - subscription revenue recognized ratably over the year. Sales rep gets paid within 30 days after customer payment received.

accounting commissions

asked , updated

by clark31
Answers
answered , updated

by u.daniel

0

The current guidance is that costs to acquire a contract (like a subscription) should be capitalized and amortized.