I know that when supplier Purchase Order is received, the system is doing Dr. WIP Material Cr Clearing Account from AP (I call this accrued liability) and AP invoice entry creates transaction Dr. Clearing Account from AP Cr. Payables Account
When Sales Order is shipped (Customer Shipment), the system is doing MFG-CUS transaction type Dr. COG Cr. WIP Material. And Shipment Invoice creates Dr. Receivables Account Cr. Sales Account.
I’m wondering if the system is doing accrual on revenue side, similar to AP, at customer shipment creating transaction Dr. AR Clearing Account Cr. Accrued Revenue Account or Sales Account and at invoice creating Dr. Receivable Cr. AR Clearing Account Notice: Epicor’s default AR Clearing Account does not function as expectation as it pulls COGS not SALES figures per Hierarchy document.
The reason doing this is because invoicing is not necessary happened after customer shipment and we cannot invoice customer before shipment.