Skip to Content
author's profile photo Former Member
Former Member

Accounting Flow

Hi all ,

Can you please explain me what does this mean - Revenue is booked at time of shipment and the offset is to an accrual account in the summary billing process. Summary invoice is booked to trade A/R and accrual entries are reversed at designated time..

Any help is greatly appreciated ...

Edited by: Om Sairam on Apr 9, 2008 10:11 PM

Edited by: Om Sairam on Apr 9, 2008 10:21 PM

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

1 Answer

  • author's profile photo Former Member
    Former Member
    Posted on Apr 10, 2008 at 03:44 AM

    Hi,

    As far as I can understand, the meaning is like this:

    In the initial phase on shipping, the following entry is to be passed:

    Accrued Income account Dr

    To Income account Cr

    ( Here we do not know the customer and so this provisional entry is getting passed)

    The final entry would be:

    Customer account Dr

    To accrued income account

    (On sending the bill to the customer)

    Hope that clarifies

    regards

    Venkatesh

    Assign Points if useful

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.