Retail

BOPIS — Customer Collects Item In Store

Recognizing revenue when the customer picks up their pre-paid online order.

Account NameTypeDebit ($)Credit ($)
Deferred Revenue (BOPIS)Liability (-)116.00-
Sales RevenueRevenue (+)-100.00
VAT Output Tax Payable (16%)Liability (+)-16.00
Cost of Goods SoldExpense (+)55.00-
Merchandise InventoryAsset (-)-55.00

💡 Accountant's Note

Control passes at the point of physical handover. Revenue and COGS are recognized simultaneously when the customer collects the item.

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Expert Analysis by Qusai Ahmad

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