00:00on this training i'm going to be showing how to set up the revenue recognition and how it works
00:05in the accounting so to do that i'm going to go to settings the other sentence we have a recall
00:12pardon me i've already opened most of the tabs already just to make this class first so we have
00:17the settings then once you go to settings you go to accounting settings business rules revenue
00:24recognition they enable revenue recognition so i've created a test liability account under
00:30chart of accounts so which is a client liability quote liability accounts name test liability so
00:37i'm going to be setting everything to full payment that has recognition trigger at what time should
00:43it trigger send us at what time should it send to the sales that's when the payment is full
00:49full payment recognition amount entire invoice amount recognition maximum recognition invoice
00:57amount that's the total invoice i'm going to save this so once this is saved you go down to settings
01:08go down to create invoice sorry let's create an invoice all right i'm going to be naming i'm going
01:16to be making it on the 28th so you can it you won't mistake it with the others that we
01:21are having there
01:24let me select a name
01:29uh boy industries all right uh commission no commission
01:36we have invoice maybe the next thing is for us to select the item because the moment we
01:45fail the revenue recognition it will affect all the items that the company in these weeks so uh let
01:51me search for this property syz property
02:09then item
02:19uh let me set this all right so we have the cis account where the cis typically will post to
02:26but
02:27since we have the recognition account it won't post to the sales account so let me
02:33open the sales account and the revenue the liability account sorry uh that's test liability
02:57it's going to appear here and let me open yeah this is the test liability account
03:07so i want to open a new tab uh on this new tab i'm going to be opening the sales
03:12account so you see the transaction
03:14transaction form it tests liability account to the sales account and the sales account is called
03:22xyz guardian estates sales account
03:36all right
03:37all right this is it so let me open this
03:42now when i put this you can see there's no there's none for 2020
03:47not for 2020 so let me for 20th sorry this 19 all right so let me go down open this
03:56save this
04:01so once you save
04:05uh let me approve the invoice
04:13all right so let me
04:21how to make a payment of 50 million
04:26let's say 60 million for the 20th remember we are using 20th dates 60 million 60
04:38and before i make these payments uh the first thing you'll notice is once it has been approved the test
04:44liability account will increase
04:47uh let me show you just liability account to increase
04:54by the invoice that is created uh let's go down to all right this is it the test liability account
05:02will
05:02increase you can see on the 20 28th uh this is the this is the amount the total invoice amount
05:10so let's add the payments to it 60 million
05:17all right uh transfer
05:22let me save this
05:25so once it's saved
05:29you'll notice it's it won't come down to the says so this is account yet
05:36this is account will still be empty because we've not got it we've not triggered it yet
05:42so it's still empty it's trying you can see the end it's 22 but it's still empty
05:47train that the invoice has not recognized it yet so uh let's add another payment so you can see for
05:57yourself that exactly see showing 120 150 uh let's add another payment to the invoice
06:12uh let me uh let's add another invoice to it
06:19let's make under payments uh of so let's make it 28 or 21 let's make it 28
06:31uh 50 million
06:38transfer
06:41save
06:44it still it still won't
06:48the invoice is done but it still won't affect the sales account why because the trigger that we
06:54set was for the all invoice remember the entire invoice amount that has the full payment sorry the trigger
07:05is the full payment so let's complete the payments now
07:14so once we complete the payment it's going to trigger automatically and it will go down to the sales invoice
07:24so i mean if sales account short of accounts all right so we have this 28
07:46so we can save this
07:52so once we save it
07:56it's going to debit
08:00yeah
08:04okay
08:05so you can see once the payment is complete it debits the test liability account so the
08:13balance on the test liability account reduces why the sales account increases
08:20uh let's this load i'm just refreshing it and this is it
08:25so this 20th and if now it's now recognized as its full sales so thank you very much
08:33so
08:33so
08:33so
08:33so
08:33so
08:33so
