How to Record Hardware Repair Service Revenue
Records revenue for out-of-warranty hardware repairs satisfied at a point in time when the unit is returned to the customer.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable | Asset | 225.00 | - |
| Repair Service Revenue | Revenue | - | 225.00 |
💡 Accountant's Note
Recognition occurs when control of the repaired asset is transferred back to the customer, satisfying the performance obligation.
Practitioner & Systems Framework
💻 ERP Architecture
Link revenue recognition to the 'Shipped' status in the RMA (Return Merchandise Authorization) module.
⚠️ Audit Flags
Large balances in Work-in-Process (WIP) for repairs that have already shipped.
📄 Required Documentation
Repair work order, parts consumption list, and shipping tracking number.
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