Revenue Compliance

13 articles

1. 01

   Revenue Recognition Rules Overview

   Revenue recognition is a fundamental accounting principle that determines when to record revenue in your financial statements.

2. 02

   Configuring Releases: Depreciation, Prepayments, Deferred Revenue

   Accounting releases control how and when transactions are recognized in your ledger.

3. 03

   Accruals, Prepayments, Deferred Revenue, and Depreciation

   Understanding the distinction between accruals, prepayments, deferred revenue, and depreciation is essential for accurate financial reporting.

4. 04

   Multi-Currency Revenue Recognition

   Multinational companies must handle revenue recognition across different currencies and tax regimes.

5. 05

   ARR Tracking and Reporting

   > **What is this page about:** ARR tracking in Light calculates and reports Annual Recurring Revenue automatically from your subscription contracts, covering the formula, how upgrades and churn move the number, the SaaS Metrics dashboard, and how ARR differs from revenue recognized under GAAP.

6. 06

   E-Invoicing Compliance (Peppol)

   E-invoicing is the digital exchange of invoices between businesses and government authorities.

7. 07

   Tax Compliance — HMRC (UK) and VAT

   > **What is this page about:** How Light handles UK VAT: configuring your VAT registration and tax codes, how input and output tax are recorded, how a VAT return is prepared and filed with HMRC through Making Tax Digital, and what to keep for an audit. It assumes your UK entity is VAT registered.

8. 08

   Tax Compliance — AvaTax (US)

   > **What is this page about:** How Light works with Avalara's AvaTax to calculate US sales tax: what Light sends and when, how tax codes reach your invoice lines, how exemptions and returns are handled, and which parts of compliance stay in your Avalara account. Read it if you sell into US jurisdictions.

9. 09

   Audit-Ready Record Keeping

   > **What is this page about:** What auditors ask for and where each item lives in Light: complete ledger records, change history, attached source documents, reconciliations, and the reports to export for a close or audit file. Read it before your first external audit.

10. 10

    From tax codes to a VAT return

    > **What is this page about:** How the tax tags on your tax codes roll up into the boxes of a VAT return, what has to be in place before you run one, and how to produce and file a return.

11. 11

    Producing and reviewing the VAT return

    > **What is this page about:** How to generate a VAT return for review, drill from a box into the postings behind it, and catch a transaction that landed in the wrong box because it used the wrong tax code.

12. 12

    The VAT clearing journal

    > **What is this page about:** Why input and output VAT accounts need clearing after a return is filed, and how to post the clearing journal entry yourself.

13. 13

    Filing, evidence and corrections

    > **What is this page about:** Light doesn't keep a permanent record of a filed VAT return.