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Revenue Recognition based on Item Fulfillment

edited Aug 19, 2020 12:02PM in Ask A Guru 6 comments

We've set the option "Invoice in Advance of Fulfillment" = YES.

We don't have Advanced Revenue Management Licensed.

We generate the invoice and get following GL impact:

DR Receivables 200

CR Revenue 200

We really need

DR Receivables 200

CR Unearned Revenue 200

Next after we fulfill half of the order we get following (assuming item cost is half of the price)

DR COGS 50

CR Inventory 50

At this point we need to recognise the revenue as:

DR Unearned revenue 100

CR Revenue 100

My question:

Will Advanced Revenue Management (ARM) handle the above automatically and should we license it?

Or is there another way to handle it?

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