During the recent #1SME1Sistem seminar, a participant seek clarification on how to recognise Revenue where deposit is collected first before the issuance of invoice later on.
Revenue is recognised when invoice is issued. Hence when deposit is collected from the customer, the accounting transactions shall be Deposit Payable Account and Bank Account.
When the invoice is issued, the accounting transactions shall be Revenue Account and Customer Account.
When the remaining balance is paid by the customer, the accounting transactions shall be Deposit Payable Account and Customer Account (to close the deposit); and Customer Account and Bank Account. (to close the receivable from customer).
The end balances shall be Revenue Account and Bank Account.**
Institut Memandu Jaafar Othman 