Revenue recognition

Revenue recognition answers "when does the sale count?" Under IFRS 15 / ASC 606, revenue recognises as performance obligations are satisfied.

Recognition methods

• On completion (point-in-time) — revenue books when the service is done: POD for road, arrival for air / sea, completion for warehousing orders. Default for most forwarding.
• Pro-rata by time — for warehouse storage fees (billed per day / month, recognised daily).
• Over-time (percentage-complete) — for multi-leg, long-duration shipments where revenue is earned progressively. Less common; used on large project cargo.
• On invoice — simplistic, not IFRS-compliant; rarely appropriate.

The platform lets you choose per service line.

Default rules

• Air / sea / road freight: on completion (POD / ATA / delivery).
• Customs brokerage: on completion (entry cleared).
• Warehousing — storage: pro-rata daily.
• Warehousing — handling (in / out): on the transaction date.
• Value-added services (labelling, kitting): on completion.

Editable per tenant and per customer contract.

Deferred revenue

If you invoice up-front but haven't performed yet, the prepayment posts to deferred revenue (liability). As performance happens, deferred revenue converts to recognised revenue.

Examples:

• Advance payment on a project shipment.
• Prepaid storage for a fixed term.
• Subscription / retainer arrangements.

The platform amortises deferred revenue automatically per the service's recognition rule.

Unbilled revenue

The inverse: performance done, invoice not yet issued. Posts to unbilled revenue (asset) until the invoice is cut, then clears to AR.

Keeps P&L correctly matched when billing lags delivery.

Period close

At period end:

• Every shipment with POD/ATA in the period books revenue if not already.
• Deferred revenue amortises to date.
• Unbilled revenue scans outstanding.
• Related cost accruals post (see cost accruals).

Result: P&L matches revenue with cost, both in the right period.

Reporting

• Revenue recognition register — every line recognised in the period, with source document.
• Deferred revenue roll-forward — opening, additions, amortisation, closing.
• Unbilled revenue ageing — unbilled by age, flag stale.

All exportable for auditors.

Disputes and credits

Issuing a credit note against a recognised revenue reverses the recognised amount in the current period. Nuance: if the dispute relates to a prior period that's closed, book to current period and disclose in notes.