Revenue Recognition enhancements in QAD’s 2017 Enterprise Edition

Posted on: May 4, 2017 | By: Andy Vitullo | QAD Financials

Revenue Recognition in the appropriate accounting period is a critical general ledger accounting entry.   Monthly, Financial leaders wrestle with Revenue Recognition.  Common considerations include:

·         Inclusion in the correct accounting month.

·         Matching of Sales and Cost of Goods Sold.

·         Recognition of Revenue as title transfers to the customer.

Companies running QAD’s ERP software have built custom programs to ensure revenue is booked to the correct accounting period.   Other Companies have levered the consignment module to manage this process.  

In  QAD EE 2017 Release, new software functionality has been developed to assist the accurate recording of Revenue.   This new software functionality supports the Recognition of Revenue when control of the goods or services in each performance obligation is transferred to the customer and discounted for time value when significant.  A performance obligation is a measure of when delivery of goods or services has been completed. Only when a performance obligation is satisfied can you recognize the revenue.

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