Revenue recognition journal created once more.Inventory close and adjust posted (I see the 200 difference posted).PO Invoice received with value of 5200 USD.SO invoiced to generate Revenue schedule lines.PO Received/SO line updated to Delivered automatically.Direct delivery PO created in order to fulfil the requirement.Sales order created for a product that is to have revenue recognised monthly for 12 months.The check is that Gross profit Gross Profit / Revenue 128,571 / 428,571 30. This is demonstrated in the diagram below. So if gross profit is 30 of revenue, then cost of goods sold must be the remaining 70 of revenue. The total revenue counts the total earnings from sales during a financial period. The cost of revenue includes all the expenses of manufacturing, including marketing and shipping costs. It considers the cost of revenue and the total revenue. This includes everything that goes into actually making the product and delivering it to your customers. The gross profit formula tells us that Revenue Cost of goods sold + Gross profit. The cost revenue ratio is a measure of efficiency that compares a company's expenses to its earnings. Where Revenue is to be recognised for a FIFO costed product and there is a variance in the line amount on a Purchase order compared to its Purchase invoice amount, how is this updated in the COGS figure posted in the Revenue recognition journal? Cost of Goods Sold (COGS), sometimes called Cost of Revenue (COR) or Cost of Sales (COS) in businesses that provide services rather than physical goods, covers the money your business spends creating and delivering its product or service. Most importantly, COGS is a key component of determining two critical business metrics: a company’s gross profit and its gross margin. Could anyone please help with a query I have with Revenue recognition functionality?
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