Hello everyone, I need some clarification regarding revenue recognition topic. I have a customer who sells hardware products. I have set up revenue recognition at the time the item is fulfilled which doesn't work for my customer as he recognize the revenue only when the goods are received by their customers. The actual process is the following: Create SO->Dropshipment PO-> Fullfil(Revenue Recognition)-> generate invoice. IS there any way to workaround that by keeping the revenue recognition at the item fulfilment? I can't Invoice before fulfilling orders as serial numbers are entered the Item fulfillment and which should appears at the invoice. Thanks in advance!!

For all intents and purposes, the rev rec is variable as you don’t know when it’s received. So either you put the line on hold or put future dates (ratable) and then update the dates once you know the receipt date. Or make a custom revenue event.

Hi Josh, Thanks a lot. The second option seems very pretty to use ! :)

I am with @Josh, your issue is to get a reliable information consistently for the custom rev event. I would error on the side of practicality and recognize revenue upon fulfillment as custom revenue event requires a script (to recognize revenue). Unless of course you ship from NYC to South Africa by sea.

Hi Karina, Thanks for your help. So for you it is more proper to use the Hold instead of a future date ? Thanks

Hi @Leya sweet there isn’t an option in NS to use future date per se. Hold is an option, yes. Not knowing your selling process and your product make it a bit peculiar to make assumptions on what would work best for you.

Hi Karina, The selling process is that we sell hardware products and we recognise the revenue until the products are received by our customers.

Hi Leya, i gathered this much, and it does provide enough information for me to say what is the best way here other than stick to fulfillment date because it is out of the box simplest way. The other option - if you have resources - is to create custom rev rec event and create a script that would pull your receipt data from somewhere in the depth of your system and your rev rec custom event will be based on that date. the hold is a manual process and obviously prone to errors