Deferred COGS Accounting in Release 12
June 10th, 2009
Written by Paresh Patel
Deferred COGS is a new feature introduced in Release 12. The basic fundamental behind the enhancement is that the COGS is now directly matched to the Revenue.
Prior to this enhancement, the value of goods shipped from inventory were expensed to COGS upon ship confirm, despite the fact that revenue may not yet have been earned on that shipment. With this enhancement, the value of goods shipped from inventory will be put in a Deferred COGS account. As percentages of Revenue are recognized, a...