Revenue Accounting for Korea

Summary:

Real time revenue accounting while account for AR and tax during month end

Content (please ensure you mask any confidential information):

Hi all,

We have a new requirement in Korea which is to keep real time revenue accounting but for AR and tax, will only account for AR and Tax when confirm with clients during month end. The accounting entries will be like below:

If the sales price is KRW 20,000 inclusive of tax, it should be recognized as follows.

Step 1 System real time accounting:
Dr Unbilled receivables 18,182
Cr Revenue 18,182

Step 2 confirm with clients about invoice:
Dr A/R 20,000
Cr Unbilled receivables 18,182