Reversal of revenue at period end

as there are a lot of revenue accounts with automatic postings in Epicor, I would like to hear how you are doing with revenue recognition in the case where the goods will not be at the incoterm (DAP in this case) destination in the same period as the invoice was done, when the goods left the factory. Any good hints for this? Normally I would do this with a journal entry, but I am hesitant about this due to the fact that there are many accounts with automatic postings. Thanks in advance!

There is an INCOTERM/FOB Idea that hopes to improve this functionality. I spoke to a product manager about it about four years ago.

Thanks Mark: I read the thread, and got even more worried, I guess…I am not sure what all steps you have to take today in order to achieve the wanted end result though?

The only suggestion I have, since we don’t know how your G/L Controls are set up, is to go to your test instance and run transactions and find the gaps from how it’s setup to what finance wants.

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Would a reversing JE work? As I understand them, it makes a transaction now, and schedules the reversing transaction later.

  1. Invoicing posts to revenue acct
  2. Reversing JE debits revenue, credits your incoterm acct. Also schedules the reverse of this.
  3. When the reversal happens everything is back in revenue acct.

As usual, I may have credits and debits backwards - but you get the point

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Perhaps another option would be to use AR Clearing functionality.
I used to use that with FOB Destination (DFAS) shipments, where the revenue would not be recognized upon shipment, but rather delivery. This, of course requires a lot of administrative effort to maintain the status on the shipments/invoices.