Something that’s important to understand is that there are times when sales revenue is not a one-off transaction, but rather a stream that should be recognized over a period the agreement is in force or the service is being provided. 

Revenue is rarely accounted cash basis (when money is actually collected), but when risks and rewards are transferred or the obligation to provide defined service (-s) has ended. It’s therefore crucial to read through the agreements, understand with the respective parties together the expectations.

Revenue from services is often the most complicated. An often time the sale of some goods may include also a sale of a service and it’s not just understanding the difference, but encompassing that this service may require a different treatment on the accounts as well.

If the service is really one-off thing, e.g. putting some equipment together and this doesn’t take long, say a week or two, the revenue from this can be measured and accounted fairly easily within the month the service is provided.

However, it’s important to understand if there are some activities the seller is required to provide for a longer period than just a week or two. Such services may require not only accounting over a period of time, but they may also require finding their price (on occasions when the service itself doesn’t have a price separate within the agreement).