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Reply from sridharca on Jan 7 at 12:27 PM 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
| | | ---------------Original Message---------------
From: Amy A
Sent: Friday, January 06, 2012 5:32 PM
Subject: Revenue and COGS Cancellation and Reposting for Revenue Recognition Contracts
Hello,
I have a question relating to revenue recognition related contracts. For some of the contracts, revenue recognition and COGS is posted but both revenue and COGS needs to be deferred for various reasons such as customer acceptance not received, etc. at the month end. Current process is to reverse both revenue and COGS manually by journal entry. Then, re-post to revenue and COGS in future months by way of journal entry. Are there any options to automate reversal of revenue recognised and COGS and then automate re-posting of revenue and COGS?
Thanks,
Amy |
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