Hello,
I've been yelling about this for quite a while, but now I have an IRS publication (Thank you Rick Brown) behind me.
RMS should give us the option of allowing a payment for a Layaway as a sale at the time of layaway.
I have been trying to accommodate the Sale of wine futures. These, at the option of the merchant can be included in sales at the time of the sale or deferred until at the time of delivery. Either one is acceptable. RMS does not record a layaway as a sale until the item is picked up and the invoice is closed. Granted, this is the more common scenario, but it is not absolute. Give my merchant the choice to post as a sale today, or tomorrow, depending on their business model.
While we are at it, allow them to use a customer's account to accept a deposit for a layaway.
Here is the passage I am citing:
It is the Service's position that the advance payments are treated under the general provision of Treas. Reg. section 1.451-5(b). Treas. Reg. section 1.451-5(b) provides that advance payments are includible in income in the year of receipt or in the earlier of the taxable year the advance payments are recognized under the taxpayer's method of accounting for tax purposes or the taxable year the advanced receipts are recognized under the taxpayer's method of accounting for book purposes. Thus, the advance payments may be deferred by the wineries under Treas. Reg. section
1.451-
5(b).
Rob
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