1. Accounts Receivable Implementation Guide
  2. Example: Recognizing All Revenue for an Invoice

Example: Recognizing All Revenue for an Invoice

  1. When you enter the invoice that is sent to revenue recognition, the system creates a PLA entry for the amount of the invoice.

  2. When you post the invoice, the system creates a corresponding entry for the amount of the invoice in the A/R Trade account.

  3. When you recognize all revenue for an invoice:

    • The system creates a reversing entry in the PLA.

    • The system credits the revenue account with the amount you recognize.

T accounts for recognizing all revenue for an invoice.