Question

Deferred revenue functionality in Receivable

  • 27 July 2021
  • 8 replies
  • 50 views

The User need to create deferred revenue functionality in Receivable.

 

Ex.   Sales order line Amount ---10000 (Configuration Changes)

 

Once Shipping process and complete value should be transacted to Deferred Revenue Account.

 

When complete the Configuration process in steps by step, user is creating invoices.

Once created the invoice system should recognize the Exact Revenue.

 

Therefore, we need to know what are the configuration steps.

 

 

Regards

Nethupul


8 replies

Do You have the Deferred Revenue Module for Acumatica?

Hi,

Yes. we are going to show the customer this functionality for demo pourpose.

Ex. 

Consider the following steps. 

 

Create Sales Order   ---- (Ex. It cab be a Service Installation. there are two stages)

Create Invoice ----- (Total invoice amount Need to Transfer Differed Revenue Account not COGS directly)

Once Confirmed stage one, User should have a option to recognize the revenue. it might be part of full. 

Invoice Amount ----10000  

Stage 0ne ---4000 / Stage two  ---6000

----------------------------------------------------------------------------------------------------------------

Double Entry 

(01). Create Total AR Invoice 

         Differed Revenue     -----10000 Dr

         Service Expense      ----- 10000 Cr

 

Once confirmed Stage one , user should have a option to recognize stage one amount(4000).

Differed Revenue     ----- 4000 Cr

COGS ------- 4000 Dr.

 

Thanks 

Nethupul

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hi Nethupul,

To me your example doesn’t sound like it would fit the deferred revenue module very well.  It is best for moving set amounts from Deferred Revenue to Sales each month.  Such as deferring revenue on a prepaid service contract.

Do they have projects?  It seems like a project allocation would be better for something like this.

Also your terminology doesn’t make sense.  COGS is for expenses not revenue.  It stands for Cost of Goods Sold.

You are debiting deferred revenue and crediting sales/revenue to recognize revenue.  COGS is a natural debit account.  Revenue/Sales is a natural credit account.

 

Regards,

Susan

Hi, 

 

We have performed a one test case and you can easily understand what we need. 

 

Regards

Nethupul

Userlevel 5
Badge +5

Hi @NAthukorala47 

 

With regards to the test scenario attached. 

  • No need to create a Deferral schedule once the Deferral code is selected on non stock item on SO invoice. 
  • On release of Invoice, the Deferral schedule does get created, you may check list of Deferral schedule, you should be able to find a schedule for the released invoice
  • In your case, you want to recognize the revenue ‘on-demand’ / ad-hoc value. There is no option to distribute/recognize revenue in that manner as following are the only options available at present :

 

 

Hope this clarifies,

Regards,

Dear Vijay, 

Thanks for the information we understood the on demand point.

And need few  small clarifications.

 

(01). Hope we can start this process from sales Order as follows.

  • Create Non stocks items and assign deferral codes. 
  • Create Sales Order and assign Non stock items with prices.
  • Using Prepare Invoice Functionality and create a Invoice. 
  • Create Differ schedule and recognize values base on the periods. 

We have create a One test cycle and as soon as will attach.

 

Regards

Nethupul

 

 

 

 

 

 

Hi Vijay, 

 

We faced this issue when we release the AR invoice.  Any configuration need to be done in 

Allocation rule?

 

 

HI, 

Thank you very much support from Vijay resolving the issue. 

The issue root cause is we have enable the following feature. Once we disable it then it will resolve. 

 



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