Sage results show impact on SMB market

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Sage revenue classifications

The way Sage books revenue in the U.S., at least in the division I am somewhat familiar with, upgrades can be booked into the Maintenance and Support category. So a non repetitive upgrade, say a single purchase after 5 years to upgrade the SAME product, is booked as Maintenance and Support, not a product sale. Not sure from an accounting standpoint if this is right or wrong, but it MIGHT explain why a huge 61% of revenue is classified as M & S.

I discussed this booking technique just this last week with Sage "value" group because it had become more restrictive in the last year or so and it affected margins. It never occurred to me that their might be accounting implications as to why it was done this way.

Posted by: steve morin   Posted on: 12/03/08 You are currently: a Guest | Members login | Terms of Use

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