Revenue Recognition Policy Accounts And Dates

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)

Field	Account filter	Job Profit Account Type
WIP Account	Income Account	WIP (required)
Revenue Liability Account	Asset (root type)	(not restricted)
Cost Accrual Account	Expense Account	Accrual (required)
Accrued Cost Liability Account	Liability	(not restricted)

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