Revenue from Contracts with Customers

This group holds the company's core revenue, the money earned by delivering goods or services to customers under an agreement, which is the definition used by NFRS 15. Its two ledgers are Sale of Goods and Rendering of Services; a Sales Invoice credits one or the other depending on the item. It takes no postings itself. Keeping core revenue apart from Other Income matters because gross profit, the turnover reported to the IRD and most bank ratios are built on this group alone. Revenue is recognised when goods are delivered or the service performed, not when an advance is paid, so deposits wait in Contract Liabilities. In the demo books it includes the Rs 32,000 sale to Jivan Dahal.

Revenue from Contracts with Customers = Sale of Goods + Rendering of Services, net of VAT and credit notes

1. 01Go to Accounts Setup > Chart of Accounts, expand Income, then Revenue from Contracts with Customers.
2. 02On each Item, set the Default Income Account so invoices pick Sale of Goods or Rendering of Services.
3. 03Open Financial Reports > Profit and Loss Statement and read the group total under Income.
4. 04Compare it with Financial Reports > Sales Register for the same dates; they must agree before VAT.
5. 05Use Financial Reports > Gross Profit to see the margin on this revenue.

Do not post here. Set Sale of Goods or Rendering of Services as the income account on each item or Sales Invoice line.

Revenue from Contracts with Customers includes Rs 32,000 from the sale to Jivan Dahal on ACC-SINV-2026-00004.