Setting up the company and the status

Setting up the company
1 Go to Tools > Setup > General setup > Company > Company.
2 Under the Module to generate the products' situation section, select the type of module that enables you to generate the products status:
  • Allocation of income to the period: hides the Revenue recognition menu and displays the Allocation of income to the period menu.
  • Revenue recognition: displays the Revenue recognition menu and hides the Allocation of income to the period menu.
Setting up the status
1 Go to Tools > Setup > General setup > Accounting > Status.
2 Select the following options:
  • Under the WIP entry section, check Automatic generation if you want entries to be stored in the Generation journal when validating the revenue recognition.
  • Under the Closing entry section, check Automatic generation if you want to systematically generate entries and Automatic reversing entry to automate the reverse entries.
  • Under the Pro rata calculation section, select the calculation method applied when linking products and costs to the period, in months or in days. The prorata calculated for the prorata recognition method is always in days.
  • Under the Allocation of income and expenses to the period section, specify if you want to group together lines per balance sheets and if you do not want to add logs to the history.
  • Under the Detail of situation entries section, specify whether you want to group the entry on a line per outstanding account or if you want to generate a detailed entry per customers or suppliers (using an SIA or a Deferred revenue reconciliation account set up on third-parties).