Course Outline
Join PRO

What accounting entry is made when a company receives an order for its goods or services?

Harold Averkamp, CPA, MBA

Definition of Accounting Entry When an Order is Received

At the time when a company receives a customer’s order (without receiving payment), no accounting entry is made into the company’s general ledger accounts. (However, there could be an entry into the company’s computer system for scheduling the work or shipment, etc.)

Reasons for No Accounting Entry When an Order is Received

The following is the rationale for no entry into the company’s general ledger (and no effect on the company’s financial statements) at the time that an order is received:

  • The company has not yet earned the revenue
  • The company does not yet have a right to a receivable or other asset

The revenues and a receivable will not be earned until the company ships or delivers the goods or services.

The company may have a responsibility to deliver what it offered to the customer, but there is no double-entry business transaction to be recorded at the time that the order is received.

Join PRO to Track Progress
Must-Watch Video

Advance Your Accounting and Bookkeeping Career

  • Perform better at your job
  • Get hired for a new position
  • Understand your small business
  • Pass your accounting class
Watch the Video

Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials

Read all 2,645 reviews



PRO Plus

Lifetime Access (One-Time Fee)
Word Scrambles
Bookkeeping Video Training
Financial Statements Video Training
Visual Tutorials
Quick Tests
Quick Tests with Coaching
Cheat Sheets
Business Forms
All PDF Files
Progress Tracking
Earn Badges and Points
Certificate - Debits and Credits
Certificate - Adjusting Entries
Certificate - Financial Statements
Certificate - Balance Sheet
Certificate - Income Statement
Certificate - Cash Flow Statement
Certificate - Working Capital
Certificate - Financial Ratios
Certificate - Bank Reconciliation
Certificate - Payroll Accounting

About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on

Learn More About Harold

Certificates of

Certificates of Achievement

We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping:

  • Debits and Credits
  • Adjusting Entries
  • Financial Statements
  • Balance Sheet
  • Income Statement
  • Cash Flow Statement
  • Working Capital and Liquidity
  • Financial Ratios
  • Bank Reconciliation
  • Payroll Accounting
Badges and Points
  • Work towards and earn 30 badges
  • Earn points as you work towards completing our course
View PRO Plus Features
Course Outline
Take the Tour Join Pro Upgrade to Pro Plus