How to post revenue on sales shipment.

Finance and Operations/AX User Forum
1

Please a quick one, because of IFRS, revenue is not recognised until goods are delivered. Our client is a manufacturing company, so they want to run this kind of posting when raising a sales order before invoicing the customer. The posting is below

DR: Goods in Transit (GIT)Account, CR: Inventory- When goods have left the premises

DR: Cost of Sale, CR:GIT-When goods are deilvered

DR: Customer, CR:Revenue-When goods are delivered

But I tried using the shipment in the sales order posting profile under item posting, it is grayed out& I don’t no how to enable it.

Thanks, ur timely response will be appreciated

2

You mean the deferred revenue reference? Does your item group have the flag set to allow it?

3

What is the costing method you are using?

Well one workaround is that you can use packing slip account for Revenue and Packing slip offset for GIT. When packing slip is posted, these two account will be hit. When you invoice SO, the entries will be reversed and actual entries will be posted.

Standard AX doesn’t have separate accounting for GIT which is generally required in SO and Transfer order posting.

Also, when you post the SO packing slip, the entries are generated at item running average cost, however it also depends on the costing method.

Pranav…

4

Thank you very much! I will test it&give u a feed back.