Question

Customer Warranty - revenue recognition

  • 30 November 2023
  • 1 reply
  • 49 views
tokrcz
Rank
Badge +2

Hello,

 

is there any way in IFS Cloud how to handle revenue recognition (revenue period allocation) for service “customer warranty” on Customer Order connected to part delivery? Our warranty is connected to hardware, it means we need to use customer order for shipment of inventory parts. 

 

Thanks

Tomas

1 reply

Marcel.Ausan
Rank
Userlevel 6
Badge +15

@tokrcz this could be possible if you’re invoicing from Service Contract → there you have the option for Period Allocation for the revenue.

Then you could have separate CO for delivering the hardware at 0 price. Or you could setup your system that when Service Invoice is created from Service Contract to use an order type that has a stop after order is released.

Then you could:

  • start the invoicing process in Service Contract with Period Allocation
  • due to order type being used, the process should stop after CO is created and Released
  • Go in the newly created order and add the hardware sales part at 0 price
  • deliver the hardware and service line from the CO
  • Invoice the CO 
https://www.linkedin.com/in/marcelausan/

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