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Partial Revenue Recognition

Posted on by 21
I want to Partially recognize revenue from sale invoice. Is it possible doing like this in BC.
 
The Accounting look like this. 
 
Accounting                                Debit      Credit 
Accounts Receivable                 50,000     
Deferred Revenue                                     5,000 
Revenue                                                  45,000 
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  • Suggested answer
    DAnny3211 Profile Picture
    DAnny3211 9,217 Moderator on at
    Partial Revenue Recognition
    hi

     it is possible to partially recognize revenue from a sales invoice in Business Central using deferral templates. First, create a deferral template and define the calculation method and periods. Then, assign the deferral template to the sales line. When you post the invoice, Business Central will automatically defer the revenue according to the template. For example, for an invoice of 50,000 with 5,000 deferred revenue and 45,000 recognized revenue, the accounting entries will be: Debit: Accounts Receivable 50,000, Credit: Deferred Revenue 5,000, Credit: Revenue 45,000.

     
     
    Regards


     
  • Suggested answer
    Yi Yong Profile Picture
    Yi Yong 802 Super User 2024 Season 2 on at
    Partial Revenue Recognition
    Hello,
     
    Unfortunately, 'Allocation Account' is not one of the options in the Job Planning Lines.
    You will have to customize this.
  • Suggested answer
    Mubashir Hussain Profile Picture
    Mubashir Hussain 21 on at
    Partial Revenue Recognition
    Thanks, yi yong. its really helpful, one final question. how I can associate this with job planning line. or what if I create the sale invoice from job planning line? 

    thanks, Appreciated.  
  • Verified answer
    Yi Yong Profile Picture
    Yi Yong 802 Super User 2024 Season 2 on at
    Partial Revenue Recognition
    Hello,
     
    Understood, the deferral function will immediately post the 'deferred' amount on the subsequent dates based on the schedule.
     
    If you are okay with manual reversal then I suggest to look into the Allocation Account.
     
    Below is my testing:
    * Assuming it is always 10% of the total sales.
     
    * Use 'Allocation Account' type
     
    * System will post accordingly to the ratio
  • Mubashir Hussain Profile Picture
    Mubashir Hussain 21 on at
    Partial Revenue Recognition
    Hi Yi Yong 
     
    Here in the screen shot attached. 
     
    When I Post sale invoice with this deferral code. It deferred the revenue for 5,000 but System nullified the Deferred Revenue Account 2318 by putting the reversal entry in the deferring date. I don't want to nullify the deferral account; the value should retain in the accounts and in future I should manually put the reversal of it.

  • Yi Yong Profile Picture
    Yi Yong 802 Super User 2024 Season 2 on at
    Partial Revenue Recognition
    Hello,
     
    Would you mind showing how the deferrals template was setup?
  • Mubashir Hussain Profile Picture
    Mubashir Hussain 21 on at
    Partial Revenue Recognition
    Once I post the sale invoice it makes my Deferred revenue account zero. I want to retain this 5000 in the in the deferred revenue Account. which step I am missing. 
  • gdrenteria Profile Picture
    gdrenteria 9,579 Most Valuable Professional on at
  • Suggested answer
    Yi Yong Profile Picture
    Yi Yong 802 Super User 2024 Season 2 on at
    Partial Revenue Recognition
    Hello,
     
    There is a standard deferral function in BC.

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