When the Advanced Revenue Management feature is enabled, revenue for all items is deferred until revenue recognition journal entries are created. Item records use the system–generated deferred revenue account and the Default Standard revenue recognition rule by default.
Normal Gl impact of invoice:
COGS A/C DR to Income from sales A/c
When Advanced Revenue Management feature is enabled:
COGS A/C Dr to Deferred revenue A/c
Solution
To override this this behavior:
1. Navigate to List > Accounting > Items > New
2. Select Item Type to be created
3. Fill in the mandatory fields
4. Under Accounting Subtab:
- Income Account Field: Choose the desired GL account
- Deferred Revenue Account Field: leave it blank
5. Under Revenue Recognition / Amortization Subtab:
- Create Revenue Plans Field: Leave it blank
- Direct Revenue Posting check the box
6. Click on Save