SM Agreement Service Deferral Form

Use the SM Agreement Service Deferral form to set up amortization schedules for revenue recognition on periodic agreement services flagged for separate billing.

You will only need to use this form if you recognize the revenue for payments received against an agreement service equally over the term of the related agreement. Access this form by double-clicking in the Amortization Schedule grid of SM Service.

Note: You can only set up amortization schedules for an agreement service if the Revenue Recognition drop-down is set to S-Amortize for the related agreement (in SM Agreements).

Once you begin billing the agreement service and receiving payments, you will run the SM Recognize Revenue form to recognize revenue based on the defined schedule. The system determines the actual amount to recognize based on the amount that is available to recognize (billed amount) and the date/month in which you run the revenue recognition process. For example, if you have a monthly amortization schedule and you skip the revenue recognition process for one or more months, the system recognizes all amounts previously unrecognized for the months prior to and including the specified date/month. For more information, see SM Revenue Recognition Form.

If you modify the remaining amount to bill for a periodic service (being billed separately) and the related agreement is flagged for revenue amortization, you will need to update the deferral schedule for the service to accommodate the change. When you renew the agreement, the system will automatically adjust the deferral schedule based on the full service price. For more information, see the Revenue Deferral section of the topic.

Setting up an Amortization Schedule