Cloud-based Project Management Software - online resource management, resource scheduling, project planning, time & expense tracking, project billing & cost reporting

Support | Contact | Search | Français

North America:
Europe:
Australia:

877 483-6769
+44 0 84 5888 0999
1300 698 620

Project management software, Cost accounting, Project tracking system

Library

Client Video Testimonials

Client Case Studies

Demos

Webinar Recordings

White Papers

Glossary of Terms

Resources

Home

Library

Project Management Software Glossary

Deferred Revenue

Term Definition
Deferred Revenue occurs when a customer is invoiced for a software or service that is delivered over a period of time. Deferred Revenue is particularly prevalent in support and Software as a Service (SaaS) contracts. For example, a customer is invoiced $12,000 for a one year SaaS engagement or a support maintenance plan. This amount must be entered in your accounting system as a liability (the company has agreed to provide the service over the next 12 months). Every month thereafter, as the service is rendered, the company can recognized $1,000 of revenue which also results in a $1,000 reduction of the liability. Deferred revenue can also occur in a situation where a customer is invoiced for bundled hardware and services that are not yet delivered. For example, a customer is invoiced $10,000 for new equipment and its installation. This amount is recorded in a deferred revenue liability account. When the equipment is delivered and installed, $10,000 is reported as revenue and the entire liability is reversed.

Area of Application
Revenue Recognition

Your Comments and Recommendations

Please help us improve the project management software glossary. Was this term well described? Any suggestions of how we can improve the description, what to add, remove or change? You can also use this form to suggest new project management terms we should add to the glossary.

Email:
Term Definition:
Comments:

“We needed a professional services automation system that would consolidate our databases, improve our billing and expense processes, and that would be an essential platform for moving us forward for the next five years. That’s why we chose Tenrox.”

IDBS LTD.,
David W.,
Senior Project Manager

Tenrox web based enterprise project management software is a modular solution that helps simplify your, project planning, project tracking, project accounting, expense tracking, enterprise resource / capacity planning, and time and billing.

Traditional project planning and project management software tools put the burden of creating and updating project plans on the managers shoulders. Tenrox makes your project planning and management quicker and easier by using simple and effective workflow tools to help you get the job done quicker and easier.

Our online business project planning and project accounting system is workflow-driven and replaces the spreadsheets and band-aid applications that leave your project-driven work force and processes disconnected. With work breakdown structures to mirror the way you do business, Tenrox allows you to easily map your projects to your corporate structures: Capture and track project data at any level of detail, mirror every business operation area with distinct functional and approval hierarchies, and summarize or drill down into your project workforce financials. Tenrox is the perfect online enterprise project management software solution to align your projects and workforce with your business goals.

With online project management tools by Tenrox, you obtain real-time information on costs, expenses, revenue, profits, project status, schedules and issues, ensuring successful project management planning and delivery. Tenrox Project Workforce Management Software meets the needs of both service organizations for professional services automation and for internal project management offices so you can manage and view both process and financial impact in real time.

1010 N. Central Ave., Glendale, CA 91202