COGS & Revenue Recognition

Hi Experts,

Please suggest the best practice for the following our business scenario:

We are upgrading 12.1.3 from 11i.

In 11i, Our client usually confirms the shipment and run the auto invoice in AR in the same day. So, The accounting entries as follows:

1)      Debit COGS                    *****

         Crdit Inventory Material           *****

2)      Debit Receivables          *****

          Credit Revenue                    ******

Client usually recognise the revenue once they get Bill of lading. (It will take 2 days). In case, if they do shipment last of day of every month, then they used to get Bill of lading on 1st or 2nd of next month. So According to GAAP, COGS/Revenue should recognize the same period. So, they will reverse COGS in the prior period and post manual JE in the next month and also change the GL date of AR transaction to next month.