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joey
07-19-2004, 05:05 PM
We're a start-up company selling a software embedded device through several distributors.

Question 1) Are we entitled to invoice distributors at time of shipment?
Question 2) How do we recognize or defer revenue in PT?
Question 3) Is it possible to track inventory of our product at distributors locations?

Would appreciate any guidance.

fatlady
07-22-2004, 07:30 AM
this is something you really need to ask your accountant. but in general

1) When does "ownership" transfer? It use to occur at "FOB" - Free on Board. Basically, at time of shipment.

2) Depends on what acctg method you are using - Cash or Accrual. In PT, revenue is recognized when you save the sales invoice if you are using the accrual method. If you are using the cash method, PT records the revenue at time of receipt.

3) Once the inventory item is recorded on the sales invoice, it comes out of inventory.

joey
07-28-2004, 12:07 PM
Thank you "Fat Lady" for your response.

Regards,
Joey