USA Revenue Accrual when invoiced in the middle of the month

[Alba]

Hello,
Could someone please advise me, according to GAAP standards, when I invoice to a client on the 17th (for the billing period 17th-16th of each month) and receive payment on the 20th of the second month withing the billing period do I need to accrue this revenue in each month accordingly, ie splitting the invoced amount between the billing period or it is still fine to record the revenue in the second month of the billing period?
Foe example, if I submit an invoice for the period: June 22 - July 21 and received payment on July 25 - do I split the revenue between the two months or just record it under July?
Thank you!

 

[Praz Finpoint]

It depends on what service you provide and when have you completed providing the service to the client to be entitled to the revenue and thus payment. In the example above

If you provide and complete the service to the client only on 21 July, then the revenue should be recognized on 21 July.

If you provide and complete the service to the client over a period of time from 22 June to 21 July (e.g. if the client terminates the service in the middle of this period, lets say 7 July, and you are entitled to be paid for service rendered between 22 June to 7 July), then the revenue is recognized over time from 22 June to 21 July.