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How to handle this scenario in Oracle Receivables - Accruing/deferring Income on the AR side and the

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edited Jun 27, 2021 4:53PM in Receivables & Collections

Summary

Accruing/deferring Income on the AR side and then reversing the accrued income to take into the effect into receivable finally against the revenue.

Content

The accounting entry client has while initiating a contract is as below as they put the revenue into their books in the same month the contract is initiated and instead of accruing the revenue they accrue the receivable side of it.

Accrual Income Dr - 1000

Revenue Cr -1000

Now, the the next month when client receives the invoice, they reverse the accrual income and Dr the receivable. Now the entry is as below:

Receivable Dr - 1000

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