When can you recognise the sale of capital goods? Sometimes a customer will have paid for the asset in full after receiving our invoice but then simply not made collection for whatever reason, meaning the completed goods are still sitting in our premises? The trailers have all been PDI'd and ready for collection. There is a signed sales order contract in place.
We also have situations as above, but the goods have still not been paid for at the point of delivery ? Not sure where the risks and rewards lie here, I suppose in this case it is with us if we were to deliver without having been paid. Of course we would only allow this after considered discussions/ large well know customers
Is the receiving of payment from the customer the crux of the matter, with the caveat of my initial question?
Is there a clear set of rules for revenue recognition and cut off I can refer to?