# Ratable - Daily Method

Recognized daily over time throughout the service period.

## When to use ratable - daily

Ratable revenue recognition is often used for subscription revenue, particularly
with longer-term (for example: quarterly or annual) subscriptions.

Ratable revenue, also known as revenue recognized over time, should be used where
revenue is recognized as the customer receives value from services provided over a
period of time, instead of all at once at the time of sale.

:::tip

Talk to your accountant or tax advisor!

Your accountant or tax advisor is your best resource for determining how your business should be recognizing revenue.

:::

## Example

Let's look at an example for a yearly invoice created on `Jul 20, 2025`, with
service dates of `July 20, 2025 - July 19, 2026` (a one-year term).

| Period | Month     | Revenue   | Explanation |
|--------|-----------|-----------| ----------- |
| First period | Jul 2025 |	$ 39.45 | 12 days in July / 365 days total * $ 1,200.00 |
| | Aug 2025 |	$ 101.92 | 31 days in August |
| | Sep 2025 |	$ 98.63 | 30 days in September |
| | Oct 2025 |	$ 101.92 | 31 days in October |
| | Nov 2025 |	$ 98.63 | 30 days in November |
| | Dec 2025 |	$ 101.92 | 31 days in December |
| | Jan 2026 |	$ 101.92 | 31 days in January |
| | Feb 2026 |	$ 92.05 | 28 days in February |
| | Mar 2026 |	$ 101.92 | 31 days in March |
| | Apr 2026 |	$ 98.63 | 30 days in April |
| | May 2026 |	$ 101.92 | 31 days in May |
| | Jun 2026 |	$ 98.63 | 30 days in June |
| Last period | Jul 2026 |	$ 62.46 | Remaining revenue |
| **Total** | | **$1,200.00** |