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Revenue Recognition - Fulfillment Costs

  • 1.  Revenue Recognition - Fulfillment Costs

    Posted 07-31-2019 12:55
    ​​We are considering different approaches to complying with the new GAAP revenue recognition's accounting for fulfillment costs (specifically surety bonds, insurance, engineering, design and mobe costs).  We are debating fringing the costs based on labor vs. accruals based on monthly costs, etc.  There are pros and cons to the various approaches and a couple of options would really slow down our month end close.  I'm curious what others are doing with the upfront costs and if anyone has come up with a management system?  We are on Sage 300 CRE heavily supplemented with Excel.  I appreciate any words of wisdom or suggestions from those who have already blazed a trail implementing this wonderful new accounting pronouncement.

    Tasha Gardner CPA, CCIFP
    Sargent Corporation
    Stillwater ME
    (207) 827-4435