Understanding Amortization

Amortization enables you to manage revenue by moving long-term revenue to short-term revenue, and then to earned or recognized revenue. This system only amortizes billed revenue.

When billing, the system moves the entire billed amount to long-term revenue. When you use amortization, the system moves anything from today's date plus twelve months to short-term revenue. The system moves anything from the beginning of the contract through the end of the amortization period to recognized revenue.