The confirmation of enterprise sales revenue must follow the accrual principle and the principle that substance is more important than form. If an enterprise sells goods that meet the following conditions at the same time, it shall confirm the realization of income:
1. The commodity sales contract has been signed, and the enterprise has transferred the main risks and rewards related to commodity ownership to the buyer;
2. The enterprise neither retains the right to continue management, which is usually associated with ownership, nor effectively controls the sold goods;
3. The amount of income can be measured reliably;
4. The costs incurred or to be incurred by the seller can be recorded reliably.
In line with the income recognition conditions mentioned in the preceding paragraph, if the following commodity sales methods are adopted, the realization time of income shall be confirmed in accordance with the following provisions:
(1) If the goods are sold by collection and acceptance, the income shall be recognized when the collection formalities are completed.
(2) If the goods are pre-sold, the income shall be recognized when the goods are issued.
(3) If the goods to be sold need to be installed and inspected, the income shall be recognized when the buyer accepts the goods and completes the installation and inspection. If the installation procedure is simple, you can confirm the income when you send the goods.
(4) If the commission is paid to sell the goods, the income shall be confirmed when the list of sales agents is received.
Legal basis:
Notice of State Taxation Administration of The People's Republic of China on Several Issues Concerning the Confirmation of Enterprise Income Tax Income
1. Unless otherwise stipulated in the Enterprise Income Tax Law and its implementing regulations, the recognition of enterprise sales revenue must follow the accrual basis principle and the principle that substance is more important than form.
(1) If an enterprise sells goods that meet the following conditions at the same time, it shall confirm the realization of income:
1. The commodity sales contract has been signed, and the enterprise has transferred the main risks and rewards related to commodity ownership to the buyer;
2. The enterprise neither retains the right to continue management, which is usually associated with ownership, nor effectively controls the sold goods;
3. The amount of income can be measured reliably;
4. The costs incurred or to be incurred by the seller can be recorded reliably.
(two) in accordance with the conditions mentioned in the preceding paragraph, if the following methods are used to sell goods, the realization time of income shall be confirmed in accordance with the following provisions:
1. If the goods are sold by collection and acceptance, the income will be recognized when the collection procedures are completed.
2. If the goods are pre-sold, the income shall be recognized when the goods are issued.
3. If the goods to be sold need to be installed and inspected, the income shall be recognized when the buyer accepts the goods and completes the installation and inspection. If the installation procedure is simple, you can confirm the income when you send the goods.
4. If the goods are entrusted for sale by paying the handling fee, the income shall be confirmed when the list of entrusted sales is received.
(3) After-sale repurchase of the sold goods, the income of the sold goods shall be confirmed according to the sales price, and the repurchased goods shall be treated as purchased goods. If there is evidence that it does not meet the conditions for the recognition of sales revenue, if financing is carried out by selling goods, the money received will be recognized as a liability. If the repurchase price is higher than the original selling price, the difference shall be recognized as the interest expense during the repurchase period.
(four) the sale of trade-in goods, the sale of goods should be confirmed in accordance with the conditions for the confirmation of sales revenue, and the recovered goods should be treated as purchased goods.
(5) The price deduction given by an enterprise to promote commodity sales is a commercial discount. Where commercial discounts are involved in the sale of goods, the amount of income from the sale of goods shall be determined according to the amount after deducting the commercial discounts.
The debt deduction provided by the creditor to the debtor to encourage the debtor to pay within the prescribed time limit belongs to cash discount. Where cash discounts are involved in selling goods, the amount of income from selling goods shall be determined according to the amount before deducting cash discounts, and cash discounts shall be deducted as financial expenses when actually occurring.
The concession given by an enterprise on the sales price due to the unqualified quality of the goods it sells belongs to the sales concession; The return of goods sold by an enterprise because of the quality and variety of goods does not meet the requirements, which belongs to sales return. In case of sales discount and sales return of the sold goods whose sales revenue has been confirmed by the enterprise, it shall offset the current sales revenue in the current period.