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You can account a transaction that's been placed but not fulfilled. I think when someone orders $15m of goods, you can immediately book $15m accounts receivable
by gzread 7mo ago
You can account a transaction that's been placed but not fulfilled. I think when someone orders $15m of goods, you can immediately book $15m accounts receivable (asset) and $15m goods owed (liability) as soon as you have the expectation it will happen. If the transaction falls through, you delete them.
- vasco 7mo agoThere's no deleting anything in accounting.
- datsci_est_2015 7mo agoAs someone with a partner who’s an accountant, I love seeing technologists be confidently wrong about accounting fundamentals vs. the type of technicalities that she has to deal with. Your comment highlights the absurdity of their confidence; kudos.
- jeremyjh 7mo agoUnder GAAP you cannot recognize revenue before the service is delivered or product is shipped. You can accrue revenue that is earned but not yet paid (if you are paid on Net 30, for example), but even if pre-paid you have to book that as deferred revenue, which is a liability (until you ship).