Example 2 - Revenue Recognition Only

When you process revenue recognition only, this information is true:

• The journal generation control is set to 2 (revenue recognition only).

• Invoicing does not apply.

• The system calculates the same amount for actual revenue and accrued accounts receivable.

• The system calculates the amounts for revenue and accrued accounts receivable simultaneously.

• The RC AAI does not apply because no invoice exists.

For example, if the cost for a workfile transaction is 100.00, and the markup is 25 percent, the amounts for the accrued accounts receivable and actual revenue are 125.00. The system creates these journal entries:

Account	Debit	Credit
Accrued accounts receivable	125.00
Actual revenue		(125.00)

This illustration shows the T-account postings in the general ledger:

The system uses these AAIs to direct the system to create the journal entries:

• Billing AAI table number 4832 directs the system to the base rules for the accrued accounts receivable account.

• Billing AAI table number 4811 directs the system to the base rules for the actual revenue account.