Accrual scheme vs Revenue recognition

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Posted on by fspafj

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Hi all,

Can someone explain the difference and use cases for Accrual scheme and Revenue recognition? As I understand both can be used to defer revenue to different points of time in the future and not on the time of recording transactions.

Thanks in advance.

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saurabh bharti 15,039 Moderator on at

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Hi,

1. Accrual Scheme is basically used through Journals when you want to post accruals, also used for Purchase arrcuals as well

2. Revenue Recognition is basically for Sales and it is used along with sales order process. It also includes other features like Bundles . Using this feature we can post differed revenue for a sales order based on defined schedule.

Here are blogs which explains the process:

exploredynamics365.home.blog/.../

exploredynamics365.home.blog/.../

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Sheela Ningappa on at

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HI,

Please find the below links which explains on Accrual schemes and Revenue recognition

1. Accrual scheme- docs.microsoft.com/.../accruals-overview

2. Revenue Recognition- docs.microsoft.com/.../revenue-recognition-overview

I hope this helps.

Thanks,

Sheela

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