What is the accounting entry when an order is received?
There is no accounting entry into the general ledger accounts when an order is received. The reason is there is no sale or sales revenues and no accounts receivable until the goods are shipped or delivered—depending on the sales terms.
A record will likely be created in the company’s system to track the order, plan for materials, shipping, etc., but there will not be an entry into the company’s general ledger until the order is at the shipping stage.
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What are reserves why these are placed on liability side of a balance sheet,either these remains unused for the financial period.
sorry my earliear response is irrelevanr.