GG1982,
You are still incorrect. Since Paypro is an ACCRUAL BASIS company they MUST show the income at the time of the agreement. This is a fed law and not one that is subject to whims. Trust me, I found out the hard way in an audit!
Now to take a moment and say, what if you were correct? Then the 1.4 million dollar loss you show would actually be a gain of appx 400k. If you take the loss that you came up with and reduce the tax liability of 1.8 million (since you are reducing the sales commissions to zero) then you have a net gain of 400k. Which I called for several weeks ago.
Regardless, it is not an operating loss.