In the simplest transaction scenario, the product or service is immediately delivered upon purchase. For example, customer buying groceries from a store or purchasing a game online.
Accounting principles allows revenue to be booked immediately after the transaction happens.
Immediate recognition rule is available on Leapfin Platform to book transaction amounts immediately.
|calendar date of when the product or service is purchased|
|full amount of the product or service|
|e.g. "Cash" (or "Account Receivable" if the product or service is delivered before the payment)|
Customer John purchased a newly release game on Steam for $59.99 on Jan 1st.
When the game is purchased, the following journal entry is created.
|Date||Account||Debit Amount||Credit Amount|
Updated 12 months ago