Immediate Recognition
Overview
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.
Configuration
Required parameters
Fields | Description |
---|---|
date | calendar date of when the product or service is purchased |
amount | full amount of the product or service |
Required accounts
Account | Description |
---|---|
cash_account | e.g. "Cash" (or "Account Receivable" if the product or service is delivered before the payment) |
revenue_account | e.g. "Revenue" |
Walkthrough
Customer John purchased a newly release game on Steam 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 |
Updated 12 months ago