Membership accounting optionsLast updated on 03/22/2022
How is the membership billed?
Paid up front
The entire cost of the membership is due when the customer signs up (there is a one-time charge for the membership).
The customer pays a certain amount up front (for example, a sign-up fee or first month’s dues). Once a customer signs up, there will be recurring billing (repeat billing) for the membership. These are otherwise known as membership charges, or membership dues. You can set up recurring billing for monthly, annual, bi-annual, or even weekly billing.
How do you want to realize revenue?
Revenue realized at the point of sale
Funds collected from the customer go directly into an income account. This means that the memberships revenue is recognized immediately.
Funds collected from the customer will go to a liability account; revenue will be realized as services are completed.
The recurring service invoice templates will be set up to trigger revenue recognition.
You can use the Memberships Wizard to set up an allocations table (the percentage of membership revenue that will be realized when the service is performed).
Choose the membership option that's right for you:
Type of membership
Quick Setup guide
Membership paid up front, revenue is deferred
Membership paid up front, revenue is realized at the point of sale
Membership with recurring billing, revenue is deferred
Membership with recurring billing, revenue is realized at the point of sale
Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.
Disclaimer: Information provided in this article is for informational purposes only and it should not be construed to be legal advice. Information provided in this article may also not constitute the most up-to-date legal or other information. You should not act or refrain from acting on the basis of any information in this article to meet any compliance requirements without seeking independent legal or other professional advice.