In accounting practices, vendor-specific objective evidence (VSOE) is a method of revenue recognition allowed by US GAAP that enables companies to recognize revenue on specific items on a multi-item sale based on evidence specific to a company that the product has been delivered.
It allows companies that sell items that have software licenses, support contracts and hardware items recognizing the revenue of the hardware items on delivery, and the software license or support contract based on the fulfillment of the time the contract it is related to.[1]