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[SaaS/Subscription/Annual contract] Billing flow

We will invoice you for the full amount first and then organize the steps for the monthly Advance payment/pro-rata that records sales in increments of 1/12 sales model.

Guide Overview

In this guide, we will organize the flow of cases such as SaaS, subscriptions, and annual maintenance contracts where you bill for one year first and then record the sales every month. By separating the timing of deposits and the monthly recording of sales, you can accurately grasp your monthly performance.

Advance preparation

  • Determine the total contract amount and contract period (e.g. 120,000 yen/12 months)
  • Check the registration authority for orders, invoices, vouchers, and journal entries.

Step 1: Register an order

Create a new contract from an order and register the contract details and period.example:
  • Total contract amount: 120,000 yen
  • Contract period: 12 months
  • Starting month: April 2025
Including the contract period will make subsequent document creation smoother.

Step 2: Issue an invoice

We will issue an invoice for the full amount immediately after receiving your order. Amounts received before services are provided are treated as "advance payments."Journal entry example:
  • Accounts receivable 120,000 / Advance payment 120,000

Step 3: Check the sales slip

After billing, the system will automatically generate 12 months worth of sales slips (12 pieces of 10,000 yen) with the status "Pending".Things to check at this stage:
  • Does the recording month match the contract period?
  • Is the amount prorated on a monthly basis?
Adjust the start month and number of divisions as necessary.

Step 4: Record journal entries monthly

At the end of the month, update the invoice for the month to "Recognized" and perform journal entry.Journal entry example:
  • Advance payment 10,000 / Sales 10,000
By repeating this every month, sales will be recorded correctly on a monthly basis.

Operational points and precautions

  • Deposit and invoice amounts do not necessarily correspond to sales for the month
  • Monthly profits will be accurate if you record "when and how much provision was completed" in the slip.
  • If the contract is canceled midway or the period is changed, review the amount and recording month on the voucher.