How to bill to deferred account and then move to actual service account

Hi Everyone,

I am looking for Sales order/ contract based solution to handle subscriptions and book intial billing to deferred revenue account and then move from deferred revenue to actual service income account during amortization. As per Revenue recognition principle the revenue has to be booked only when service is performed.

Scenario is

My client sells yearly subscription for maintenance related activities of some software which they sell, it charges $1200 upfront for 12 months. But the service needs to be performed every month. That means $100 for each month needs to be booked after the service is performed every month.

So intial we want to create a sales contract for sale of the subscription, order based billing needs to be done for $1200 intially, the same needs to be booked in the deferred revenue account and then each month amortization needs to be done to move from Deferred revenue to Service income, at the end of 12 months, deferred revenue account balance will be become zero and the revenue is booked properly.

Kindly let me know what would be a good way to handle this scenario.

Sales order-Peridoc billing plan and then amortization via SD revenue recognition

or Sales contract-periodic billing-release order-billing . I need to understand how this can be done in a standard SAP way through SD module.

Thanks in adavnce!!!