ramprasad (MBA) (77 Points)
28 March 2014After customers approval, we were supposed to dispatch the completed job on 28-3-2014, but due to sudden transportation issue, the customer has planned to lift the material only after april 1 week of 2014..
my query is
1) Can we book this sales in this accounting year or next year ?
2) if not, should we cancel all the sales documents prepared.
Uday
(Auditor)
(25 Points)
Replied 28 March 2014
The criteria for revenue recognition is very clear as per AS-9 - Risks and rewards have to be transferred. Getting the customs clerance is just a formality that would not be the criteria as far as accounting is concerned. You need to intimate the relevant authorities of this fact for reversal of taxes if any paid or postponment.
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