What version of IFS are you running?   What is the current invoice trigger?   Is this for all invoices or specific invoices?

Hi @cperdue ,

Thanks for the response.

I am very new to IFS, the version we are using is IFS Applications 10.

Embarrassed to say i don't what or where the invoice trigger is?  Trying to find it but am lost, do you know where I can find that?

This is an invoice via sales contract.

 

Welcome to IFS.   ;)   

An invoice trigger is the business event that creates the invoice (usually in a preliminary status).   Is the requirement you initially stated on all invoices or a specific customer?

Thanks @cperdue , I like IFS but a lot to learn!

The invoice is present on the 15th of every month but as per IFRS 15 revenue is not realised until the following month, that is for example:
We receive the invoice 15th of January, we want to book the invoice but do not want it on the Profit and Loss (P&L) until the 15th the following month. Currently the clerks are booking the invoice as per the invoice date but then then revenue is being recognised in January for example, so they are having to reclass the posting back to the Balance Sheet (BS) as the revenue is not to be recognised as yet as per IFRS 15 contracts  Obligations.

Wanted to know whether there is a day to automate this?

There are ways to automate the posting to the GL.   The most common practice is via posting controls and/or posting rules.

Hi @matthew_sutherland2891,

Do you have option to delay the cost of goods sold expenses? You might need to delay the COGS also if you are delaying revenue posting. 

Revenue posting is created when invoice is transferring from ‘Preliminary’ status to ‘PostedAuth’ status. Therefore, you may keep the invoice in ‘Preliminary’ status if it is possible. 

Best Regards

Narmada

Hi, 

I’m thinking you should probably connect with your finance consultant who may have a better understanding of your solution including the use of the sales contracts. 

I don’t want to suggest a solution that would be contrary to the designed solution. 

However, “if” the sale was connected to an IFS Project, the project accounting side has a good deal of revenue recognition functionality.   It can automatically move sales to deferred revenue and then recognize that revenue as needed.  It’s pretty robust and many options are available.   I’m not suggesting you go that route as I don’t know your solution.   Typically, Projects will work, and IFS has developed a sizeable / flexible solution.   Without knowing more, my first thought would be to use a manual POC.

The other concept that’s commonly used is period allocation where a cost or revenue can be deferred and posted to one or more future periods.    For example, move 100 in revenue to deferred revenue then next month move the 100 from deferred back to revenue. We can also allocate that over periods for example the 100 can move to 25,25,25,25 monthly values.  The downside on a quick test was that the results were not as expected if we move the rev to deferred in early January and at the end of January move from deferred back to rev. It did not work.   But January to February is very common (and easy).  Period allocation is an option in voucher entry. You select a P&L row and choose period allocation.  Posting control GP2 will manage the deferred posting (or prepaid expense) 

Hope this helps, 

Best regards.