How does the Revenue Recognition Report work

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Recognized Income by Invoice Date:
When this option is selected the recognition of the line items will start based on the ‘INVOICE DATE’. If an invoice is dated 1/14/16, for example, in the amount of $120.00, and the recognition period is set for 12 months then the monthly recognition will be $10/month starting with the January report.
Recognized Income by Invoice Due Date:
When this option is selected the recognition of the line items will start based on the ‘DUE DATE’ on the invoice. If an invoice is dated 1/14/16 but the due date is set for 2/14/16, for example, in the amount of $120.00, and the recognition period is set for 12 months then the monthly recognition will be $10/month starting with the February report.
Recognized Income by Payment Date:
When this option is selected the recognition of the line items will start based on when the PAYMENT is applied to the invoice. If an invoice is dated 1/14/16, for example, in the amount of $120.00, and the recognition period is set for 12 months then the monthly recognition will be $10/month with the first recognition being whenever the payment is applied. If the payment is applied in January then the recognition would start with the January report in the amount of $10.00, and then $10.00 each month thereafter. If the payment is applied in February then the recognition would start with the February report in the amount of $20.00, and then $10.00 each month thereafter. If the payment is recognized in August then the recognition would start with the August report in the amount of $80.00, and then $10.00 each month thereafter. In the case of a partial payment, the recognition would follow the same process as stated above with the exception that it would only be recognized UP TO the amount of the payment and then would start again when additional payments are applied. The full recognition would only happen in the event that the invoice is paid in full.