In a subscription-model context, a customer can be offered to pay for a year in advance in exchange for a rebate. This might be desirable for the business for cash flow reasons.
In accrual accounting, we will still recognize income for each month the client is subscribed. However, the rebate still needs to go somewhere on your income statement.
I've looked at things such as amortization, interest expense and operating expense, but I'm not too sure, and my accounting classes are a way back.
In which accounting category on the income statement does that fall?
