Phase revenue recognition
It is related to IFRS 15, it is generally for long term contracts which are mainly applicable for construction company which involve building a villa for 12 months etc
There is some rules for recognition of the revenue and cost.
Apart from construction company, it can be used by service companies as well which involves long term services contract.
According to this, recognition of revenue or cost are not only done when Invoice is issued, it could be recognized based on contract terms like stage completion.
Separate GL will be used for the recognition, and eventually show as Receivable when Invoice is recorded.
Do the setting-Go to general settings> enable phased revenue recognition.
Go to contract of the respective company > go to terms tab > enable Phased revenue recognition.
There is an second option use exchange rate defined on the first revenue recognition date, this is used to define the exchange rate differences. If the contract is in foreign currency.
Two approaches can be applied depends on accounting policy, business and contract agreement.
Revenue can recognized based on Multiple stages, for example, each quarter, so can be view the amount and profit and loss quarterly.