Revenue Recognition
From ADempiere
Revision as of 02:33, 22 November 2015 by Enrique Ruibal (Talk)
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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.