In practice, it is possible for a sales invoice to cover a service period that spans multiple periods. When such a sales invoice is created in SAP Business One, the entire invoice amount is automatically posted as revenue to the period in which the sales invoice is posted. By default, no posting related to this sales invoice occurs in the periods prior to the posting date in SAP Business One.
We have developed a solution that automatically generates accounting entries in the background. This allows you to make transparent, automated, and accounting-compliant entries that span multiple periods.
In detail, this means:
As soon as an outgoing invoice is created in SAP Business One Cloud that relates to multiple periods, journal entries are automatically generated. SAP automatically identifies and accrues the revenues belonging to past periods. For this purpose, a general ledger account for deferred revenue or for inventory changes is used, for example. The journal entries that accrue the revenue naturally include a reference to the main entry. This ensures the consistency and transparency between the journal entries.
The generated journal entries can be seen in the screenshots below:
