Understanding VAT in Sales Order Transactions in Russia

Russian regulations require that companies use the accrual method for VAT processing. The accrual method requires that VAT be calculated at the time of revenue recognition. The Russian regulations do not specify when revenue recognition occurs. In the JD Edwards EnterpriseOne system, it is assumed that revenue recognition occurs when you run the Sales Update program for sales transactions or enter an invoice in the Standard Invoice Entry program (P03B2002) for accounts receivable transactions.