Revenue Recognition

[Former Member]

Friends,

what is revenue recognition and what are the settings, modules involved, particularly for a company which is based on project sales.

please provide the links or any documentation.

regards,

[Former Member · Accepted solution]

HI,

Revenue recognition comes into picture when you create Contract with customer...

For e.g. you and your customer create contract then in this year customer will buy 10,000 qty in total....

So entire revenue for 10,000 qty for e,g Rs 10,00,000 go to Accrued revenue GL and then monthly as you sale from the contract it will go to Sales Revenue Cr and Accrued Revenue Dr...

Recognition is done through VF44

Regards,

Chintan Joshi