Good day

Today I got an interesting query from a franchise regarding Pastel.

Can anyone tell me how one would account for a Layby in Pastel?

Basically, the business would have customers that come in, decide to purchase something and then start making payments over the course of 3 to 6 months.

Then, only after paying in full, they will receive the goods.

What would your suggestions be for processing this transaction considering:
- VAT implications
- IFRS implications

Thank you