Hi Praveen,
I've been through the Revenue Recognition documentation which is very helpful, however I couldn't find any information to my original question or business scenario I have mentioned above in the very first thread - any revenue received during the course of the year needs to be shared / split across all the periods in the year. Sometimes the revenue could extend to some periods in the next FY as well.
e.g. sale of insurance:
Validity of insurance is 365 days
From date could be in current FY [e.g. 08.10.2015]
To date will be in next FY [e.g. 07.10.2016]
Payments from customer [s] will be received in parts [e.g. once a quarter, once a month, etc]. It is not fixed amount payments as well.
The sum of all the payments should be spread across 365 days [i.e. life of the insurance] or in other words 12 full periods that may spread across 2 FY [ in this instance for FY 2015 it will be period 04 to period 12 and for FY 2016 it will be period 01 to period 03].
Also I'm not sure how the postings to previous periods or future periods be affected. Would this be an end of year activity?
Thanks
Puru