Glossary

Delivery

Term Definition

A transfer of software accompanied by documentation to the customer. The transfer may be accomplished by the following actions:

  • A physical transfer of tape, disk, integrated circuit, or other medium
  • Electronic transmission
  • Making available to the customer software that will not be physically transferred, such as through the facilities of a computer service bureau
  • Authorization for duplication of existing copies in the customer’s possession

If a licensing agreement provides a customer with the right to multiple copies of a software product in exchange for a fixed fee, delivery means transfer of the product master, or the first copy if the product master is not to be transferred. Proof of delivery is required for revenue recognition purposes.

Area of Application
Revenue Recognition

Related Terms
Activity Based Costing
Project Accounting
Vendor Specific Objective Evidence (VSOE)

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