# Does Customer shipment do revenue accrual? **URL:** \ **Category:** Epicor ERP 10\ **Tags:** e10\ **Created:** [July 29, 2020, 7:11pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465 "2020-07-29T19:11:01Z")\ **Posts on this page:** 15\ **Page:** 1
**Author:** ![JTBAQ](https://www.epiusers.help/letter_avatar_proxy/v4/letter/j/8491ac/32.png) [@JTBAQ](https://www.epiusers.help/u/JTBAQ)\ **Post date:** [July 29, 2020, 7:11pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/1 "2020-07-29T19:11:01Z")
Hi 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. ---
**Author:** ![ckrusen](https://www.epiusers.help/user_avatar/www.epiusers.help/ckrusen/32/50584_2.png) [@ckrusen](https://www.epiusers.help/u/ckrusen)\ **Post date:** [July 29, 2020, 7:32pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/2 "2020-07-29T19:32:33Z")
There is a company level setting to allow for the accrual When enabled, costs in WIP (or from Inventory if STK-CUS). go to this account, and the Invoicing does tran from Accrual Acct to the COS ---
**Author:** ![Igor](https://www.epiusers.help/user_avatar/www.epiusers.help/igor/32/28588_2.png) [@Igor](https://www.epiusers.help/u/Igor)\ **Post date:** [July 29, 2020, 7:39pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/3 "2020-07-29T19:39:17Z")
Hi, When you do a customer shipment, you should see a DR to your ‘AR Clearing’ account (we call it “Shipped Not Invoiced”) and a CR to your WIP accounts. Then when you invoice you should see a CR to you AR Clearing account, offset by a DR to your COGS accounts, and also a DR to your Account Receivables GL offset by a CR to your Revenue GL account. For this to work, make sure you have the “Use A/R Clearing Accounting” checkbox on in your company configuration under ‘Modules’ \> ‘Finance’ \> ‘Accounts Receivable’ \> ‘General’ tab. Also make sure you have a GL setup in GL Control Maintenance for the “Inventory, COS and WIP” type for the ‘AR Clearing’ context (see image below). ![image](https://www.epiusers.help/uploads/default/original/3X/0/d/0dae14c63c5dfcb18495d4b5ac69c38eddb26595.png) ---
**Author:** ![JTBAQ](https://www.epiusers.help/letter_avatar_proxy/v4/letter/j/8491ac/32.png) [@JTBAQ](https://www.epiusers.help/u/JTBAQ)\ **Post date:** [July 29, 2020, 8:56pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/4 "2020-07-29T20:56:40Z")
I’m doing testing but I see no transaction in my environment, any idea which standard posting rule is used for these transactions? Also in addition does this pull COGS amount and post to AR clearing? this is not exactly what I want, I want to accrue Sales Order amount not cost. ---
**Author:** ![Arul](https://www.epiusers.help/letter_avatar_proxy/v4/letter/a/b2d939/32.png) [@Arul](https://www.epiusers.help/u/Arul)\ **Post date:** [July 29, 2020, 10:44pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/5 "2020-07-29T22:44:05Z")
@JTBAQ Shipment debits COGS account/AR Clearing and .credits inventory/WIP Sales amount will be impacted only after the invoice is posted. There is no sales accrual. ---
**Author:** ![tmcgrady](https://www.epiusers.help/letter_avatar_proxy/v4/letter/t/71c47a/32.png) [@tmcgrady](https://www.epiusers.help/u/tmcgrady)\ **Post date:** [July 30, 2020, 8:36pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/6 "2020-07-30T20:36:31Z")
this is useful in AP, but i have never in 17 years used or seen a need for AR Clearing. Once it is shipped it is invoiced, why do an accrual. ---
**Author:** ![ckrusen](https://www.epiusers.help/user_avatar/www.epiusers.help/ckrusen/32/50584_2.png) [@ckrusen](https://www.epiusers.help/u/ckrusen)\ **Post date:** [July 30, 2020, 8:43pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/7 "2020-07-30T20:43:16Z")
How can it be a Cost of **Sales** , before the sale is recognized? ---
**Author:** ![Mark\_Wonsil](https://www.epiusers.help/user_avatar/www.epiusers.help/mark_wonsil/32/51594_2.png) [@Mark\_Wonsil](https://www.epiusers.help/u/Mark_Wonsil)\ **Post date:** [July 30, 2020, 8:57pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/8 "2020-07-30T20:57:20Z")
> [@tmcgrady](#): > > Once it is shipped it is invoiced, why do an accrual Not all companies ship widgets. For some companies, the transfer of ownership doesn’t occur until the product is delivered or arrives at a freight forwarder for international shipments. From a GAAP standpoint, it’s not a sale until that occurs so you move that to an asset account until you get proof of delivery and then move it from that account to sales. Other companies will ship the order on one day but the truck doesn’t take it until there’s a full load. It’s not a sale until it leaves the building. So Accounting would look at the Shipped Not Invoiced report and only invoice those orders with signed shipments. ---
**Author:** ![Arul](https://www.epiusers.help/letter_avatar_proxy/v4/letter/a/b2d939/32.png) [@Arul](https://www.epiusers.help/u/Arul)\ **Post date:** [July 30, 2020, 10:50pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/9 "2020-07-30T22:50:35Z")
@Mark_Wonsil agree with you Mark. If the sales involve installation, it takes time as well. Recently I have to create a new AP Term for due from the goods receipt date instead of supplier’s invoice date which I had to refer RcvHead for the entered PO. ---
**Author:** ![ckrusen](https://www.epiusers.help/user_avatar/www.epiusers.help/ckrusen/32/50584_2.png) [@ckrusen](https://www.epiusers.help/u/ckrusen)\ **Post date:** [July 31, 2020, 4:35am UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/10 "2020-07-31T04:35:39Z")
We have products that require commissioning and customer sign-off before we can bill. ---
**Author:** ![JTBAQ](https://www.epiusers.help/letter_avatar_proxy/v4/letter/j/8491ac/32.png) [@JTBAQ](https://www.epiusers.help/u/JTBAQ)\ **Post date:** [August 5, 2020, 7:00pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/11 "2020-08-05T19:00:26Z")
Agreed. we are struggling on this and are doing manual journal entry on this. This should be an enhancement in Epicor. ---
**Author:** ![Mark\_Wonsil](https://www.epiusers.help/user_avatar/www.epiusers.help/mark_wonsil/32/51594_2.png) [@Mark\_Wonsil](https://www.epiusers.help/u/Mark_Wonsil)\ **Post date:** [August 5, 2020, 7:14pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/12 "2020-08-05T19:14:06Z")
> [@JTBAQ](#): > > This should be an enhancement in Epicor. I lumped this into the [INCOTERM/FOB Idea](https://epicor-manufacturing.ideas.aha.io/ideas/ERP-I-143) since this is the place that informs when the transfer of ownership occurs. You may want to comment on it that you have to do this manual entry. ---
**Author:** ![JTBAQ](https://www.epiusers.help/letter_avatar_proxy/v4/letter/j/8491ac/32.png) [@JTBAQ](https://www.epiusers.help/u/JTBAQ)\ **Post date:** [August 5, 2020, 7:40pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/13 "2020-08-05T19:40:45Z")
I’m not familiar with Idea, it looks like another platform and need to setup a new account. ---
**Author:** ![Mark\_Wonsil](https://www.epiusers.help/user_avatar/www.epiusers.help/mark_wonsil/32/51594_2.png) [@Mark\_Wonsil](https://www.epiusers.help/u/Mark_Wonsil)\ **Post date:** [August 5, 2020, 7:43pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/14 "2020-08-05T19:43:42Z")
This thread explains all. > [@Epicor Ideas - Post and Vote for your favorite new feature!](https://www.epiusers.help/t/epicor-ideas-post-and-vote-for-your-favorite-new-feature/68240/): > > There is a relatively new website run by Epicor that we call [Epicor Ideas](https://epicor-manufacturing.ideas.aha.io/) \<–click here that allows you to submit software ideas directly to Epicor Product Development. We are monitoring this site, and you will see comments from other users as well as from Epicor staff. It allows you to: Review current Ideas that have already been submitted, and see other comments Comment on those ideas yourself VOTE for those ideas. Once your idea is submitted, you will later see its status changed as it is … ---
**Author:** ![JTBAQ](https://www.epiusers.help/letter_avatar_proxy/v4/letter/j/8491ac/32.png) [@JTBAQ](https://www.epiusers.help/u/JTBAQ)\ **Post date:** [August 10, 2020, 4:57pm UTC](https://www.epiusers.help/t/does-customer-shipment-do-revenue-accrual/69465/15 "2020-08-10T16:57:25Z")
commentted on Ideas!