revenue recognition

  • 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. :)

      • lofx

        lofx - 2004-10-04

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


Log in to post a comment.

Get latest updates about Open Source Projects, Conferences and News.

Sign up for the SourceForge newsletter:

No, thanks