Revenue Recognition Policy — Accounts, Dates, and Charges

Overview

Revenue Recognition Policy Settings (DocType: Recognition Policy Settings) is one document per company. Rules are defined in the Recognition Parameters child table (match by Branch, Profit Center, Cost Center, Direction, Transport Mode).

Recognition date

• There is a single Recognition Date Basis per parameter row (not separate WIP vs accrual).
• WIP and cost accrual journal entries use the same posting date, derived from that basis.
• On jobs/shipments/declarations, Revenue & Cost Recognition shows:
  • Recognition Date Basis (read-only, from policy)
  • Recognition Date (posting date): read-only except when the basis is User Specified, in which case the user enters the date on the job.

Basis options: ATA, ATD, Job Booking Date, Job Creation, User Specified.

GL accounts (parameter row)

WIP recognition entry (conceptual)

• Dr Revenue Liability Account (Asset — WIP / unbilled position per chart of accounts)
• Cr WIP Account (Income, WIP)

Accrual recognition entry (unchanged)

• Dr Cost Accrual Account (Expense, Accrual)
• Cr Accrued Cost Liability Account (Liability)

Disbursement charges

Lines with Charge Type = Disbursement are excluded from:

• Estimated revenue used for WIP recognition
• Estimated cost used for cost accrual recognition

Profit, WIP, and Accrual recognition apply only to non-disbursement charge lines (e.g. Revenue / Cost charge types).

Migration note

If you previously used different account types (e.g. Asset WIP), update Recognition Parameters to match the table above before saving the policy document; validation enforces these rules on each parameter row.

Complete field reference

Policy fields live on Logistics Settings (and related operational documents). Full column lists:

• Logistics Settings
• General Job, Warehouse Job