ExcelAnt wrote: »
Pretty much Expect the SCLA is on the balance sheet and Sales is P&L. to explain with the double entry
Customer buys a boat upfront in cash
Customer decides he cant afford boat in cash so takes Credit from you (a recognised sale that he will make good on the debt)
Once the cash is received its a balance sheet movement
CR SCLA (now zero)
This is done so that the revenue is Recognised in the correct period it could be that payment is made in a different month or even year (different accounting period). But the salle was Confirmed when the customer agreed to buy.