Bookings for AMC Contracts

Aashish Jain (Student) (103 Points)

10 June 2010  

Can someone please advise how to book Sales with inclusive AMC revenue? For example, being a seller cum service provider, if we raise an invoice on a customer for the goods sold + Annual Maintenance Cost (AMC) and book the whole invoice now and pay corresponding sales-tax also, should we also book the whole AMC revenue now or it should be deferred??? (To be recognised over the life of the AMC Contract) Please suggest urgently.