revenue recognition

lofx
2004-10-02
2013-05-02
  • lofx

    lofx - 2004-10-02

    Hi all!!!

    i have a little problem. Could Anyone explain to me in simple terms what revenue recognition is? what is the purpose of it in Compiere?

    Thanks a lot,

     
    • Redhuan D. Oon

      Redhuan D. Oon - 2004-10-03

      Sometimes when u obtain revenue not so much for a simple product but lets say a service of project thats big substantial amount and has to be implemented over a long period lets say 12 months, thus u collect progress payments or even if its paid upfront doesn matter, as u like to realise the revenue in stages or periods. Thus u recognise the revenue over a different period and not on a certain period, either for tax purposes. Or just a flexibility in the business system, where u can take a sale and yet delay or split its entry into the books.
      I bet the next person who explains this cannot be this simple. :)
      red1

       
      • lofx

        lofx - 2004-10-04

        thanks a lot red1.................... I knew i could rely on you to explain this..................:)

         

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