Difference between revisions of "Revenue Recognition"
From ADempiere
This Wiki is read-only for reference purposes to avoid broken links.
| Line 28: | Line 28: | ||
[[File:revrecog6.png]] | [[File:revrecog6.png]] | ||
| − | * The created journal picks up the revenue for each month from each invoice as per the Revenue | + | * The created journal picks up the revenue for each month from each invoice as per the Revenue Recognition Plan for that invoice. |
| − | Recognition Plan for that invoice. | + | |
Revision as of 02:34, 22 November 2015
The following is still a DRAFT document but I thought you might like a heads-up. The idea of Revenue Recognition was added 12 years ago by Jorg and then never implemented. Adaxa has now 99% implemented it for both Time and Event based recognition requirements. The following explains how the process works.
Option 1 - recognise revenue over a set number of months.
- The Product is linked to a “Revenue Recognition” type so revenue on sale is put in Customer Prepayments account in the invoice posting.
- The “Revenue Recognition” tab for a Time Based distribution defines the recognition rules.
- The “Revenue Recognition Plan” tab shows the (many) invoices that have been raised that are linked to this plan
- The “Revenue Recognition Run” tab shows the planned amopunt of revenue to be recognised in each of the future months relating to a particular invoice.
- The journal column gets filled in when the revenue recognition happens and the appropriate accounting entries are created.
- A single line from above shown in form view shows a part of the invoice and when it was recognized and on what journal.
- The "Revenue Recognition Run" process creates a journal with lines that transfer from Customer Prepayment to income and records the journal line so you can drill to the journal line.
- The created journal picks up the revenue for each month from each invoice as per the Revenue Recognition Plan for that invoice.
