Revenue Recognition Accounting
An example describes how revenue recognition accounting works. A sales order has a line material value of $1000 with a tax rate of 7%.
Sales Order Amounts
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Item
|
Amounts
|
|
Line Amount
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$1000
|
|
Tax Amount
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$70
|
Accounting displays the accounting for this example, including:
1 Creation of the invoice for the sales order.
2 Deferring of the sales revenue to the deferred revenue account.
3 Recognizing of the revenue to the sales account.
Accounting
