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Reply from PSD Rajan on Jan 7 at 6:19 PM Sridhar, I am curious to know if you have actually ever implemented the
Goods In Transit solution (which takes care of the matching principle very
effectively)? If yes, would you recommend it for 25 invoices that need to
be adjusted at month end? Further, what is your effort estimate to
implement the solution?
| | | ---------------Original Message---------------
From: Sridhar Shrinivasan
Sent: Saturday, January 07, 2012 12:28 PM
Subject: Revenue and COGS Cancellation and Reposting for Revenue Recognition Contracts
Typically, revenue recognition VF44 is used for service contracts where you bill the customer upfront and then recognize revenue on a periodic basis- typically monthly.
In your case, you have PGI and then, billing to be recognized after customer acceptance.
Here is what you can do.
At the time of PGI, Dr Goods in transit account (instead of COGS),
Place Billing block on all such sales orders (billing that needs customer acceptance)
Once you get the acceptance, invoice the customer
At the time of invoice, post the following entry
Dr COGS
Cr Goods in transit
This way you do not need any reversal.
If your sales order is a cost object, then you have all the functions of results analysis.
Hope this helps.
Sridhar |
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