Thursday, July 26, 2007

Revenue Recognition Checklist - Collectability

What are the standard credit terms?

What are the customer credit terms on this deal?

> 90 days terms will defer recognition until due date(s).

Have there been collectability problems with this company in the past?

If so, then may have to defer recognition until collection.

Has a credit check been completed and evidence placed on file?

If not, then may have to defer recognition until collection.

Is the customer a reseller?

Refer to contract to see if recognition is possible.