Immediate recognition
- Ian Fondrk (Unlicensed)
Overview
In the simplest transaction scenario, the product or service is immediately delivered upon purchase. For example, customers buy groceries from a store or purchase a game online.
Accounting principles allow revenue to be booked immediately after the transaction happens.
An immediate recognition rule is available in Leapfin to book transaction amounts immediately.
Configuration
Required parameters
Fields | Description |
|---|---|
| calendar date of when the product or service is purchased |
| full amount of the product or service |
Required accounts
Account | Description |
|---|---|
| e.g. "Cash" (or "Account Receivable" if the product or service is delivered before the payment) |
| e.g. "Revenue" |
Walkthrough
John purchased a newly released game for $59.99 on Jan 1st.
Event #1: item is purchased
When the game is purchased, the following journal entry is created.
Date | Account | Debit Amount | Credit Amount |
|---|---|---|---|
01/01/2022 | Cash | 59.99 |
|
| Revenue |
| 59.99 |