Explain accounting for invoice in advance and arrears. : oracle accounts receivable
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Answer Posted / Pooja Khewal
Invoice in Advance: In this scenario, a customer is charged before the delivery of goods or services. The revenue and liability are recognized upon delivery. This method is often used for products with long production lead times.nnInvoice Arrears: Here, an invoice is issued after the completion of work or delivery of goods, but the customer is asked to pay at a later date. The revenue recognition occurs when the service is provided or goods are delivered, and the liability is recognized at the due date.
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