Shipment billing date

Yahoo Archive
1
The reason you use the shipment date as the invoice date is because when the
material/product leaves you dock you need to record the revenue at this
point. If you ship it this period and don't bill it till next period you
have violate GAAP. In general this is not a critical issue until year end
and you are audited. The auditors will make you do GL entries to move the
income into the correct period. From as practical day-to-day point of view
if you are talking with a customer and trying to tell them when their item
shipped you will have to remember to look at this shipped field instead of
just looking at the invoice date.

Neither issues are particularly compelling, but from an accounting point of
view: correct is correct, which means you should have the same bill date as
ship date. Since the information gets filled in for you automatically at
the time of invoicing why would you want to change it?

Cameron A. Janish
Misha1 cameron@...
Toll Free: 866-464-7421
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Cell: 630-712-9520
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Direct Fax: 443-638-0489
-----Original Message-----
From: Tricia Simon [mailto:t.simon@...]
Sent: Monday, December 03, 2001 02:51 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Shipment billing date


Question for the accounting-related "experts"!! :)

Currently, at our company config level, in A/R, we have the box checked to
"Use Shipment Date as Invoice Date."

What are the pros and cons of unchecking that now that we have 2 periods
under our belt? If I understand the system correctly, if I have a
shipment
that doesn't bill for some reason until the next period, it will still use
that prior period when invoiced and change my numbers for my financials.
Is
that correct?

Thanks all!

Tricia Simon, Controller
Riten Industries, Inc.
5.00.332


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[Non-text portions of this message have been removed]
2
Question for the accounting-related "experts"!! :)

Currently, at our company config level, in A/R, we have the box checked to
"Use Shipment Date as Invoice Date."

What are the pros and cons of unchecking that now that we have 2 periods
under our belt? If I understand the system correctly, if I have a shipment
that doesn't bill for some reason until the next period, it will still use
that prior period when invoiced and change my numbers for my financials. Is
that correct?

Thanks all!

Tricia Simon, Controller
Riten Industries, Inc.
5.00.332