Note 36. Revenue recognition from contracts with customer
| Revenue recognition from contracts with customers | ||
| Consolidated | ||
| SEK millions | 2023 | 2022 |
| Income statement |
| |
| Net sales from: |
| |
| Contracts with customers | 63,355 | 51,963 |
| Leasing | 243 | 172 |
| Total net sales | 63,598 | 52,135 |
|
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| Net sales from contracts with customers with a contract duration of: |
| |
| ≤ 1 year | 50,403 | 44,720 |
| > 1 year | 12,952 | 7,243 |
| 63,355 | 51,963 | |
| Performance obligations towards customers satisfied: |
| |
| at a point in time | 52,535 | 43,399 |
| over time | 10,820 | 8,564 |
| 63,355 | 51,963 | |
|
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| Additional information: |
| |
| Net sales: |
| |
| included in contract liability at January 1 | 6,336 | 3,905 |
| from performance obligations satisfied or partially satisfied in previous periods | 930 | 471 |
|
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| Amortisation of capitalised costs to obtain or fulfil contracts with external customers | – | – |
| Impairment losses | – | – |
|
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| Assets |
| |
| Accounts and notes receivables, contracts with external customers | 10,610 | 10,126 |
| Accounts and notes receivables, external, other | 8 | 26 |
| Contract assets | 2,576 | 2,566 |
| Capitalised costs to obtain a contract with a customer | – | 8 |
| Capitalised costs to fulfil a contract with a customer | – | – |
|
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| Liabilities |
| |
| Contract liabilities | 10,430 | 8,710 |
Net sales per Business Division, per geography and per product is shown in Note 1, 2 and 3. Since contracts with customers account for 99.6 (99.7) percent of net sales and leasing only 0.4 (0.3) percent the figures are shown for total net sales in these notes and not separately for contracts with customers.
A contract asset is Alfa Laval’s right to consideration in exchange for goods or services that Alfa Laval has transferred to a customer when that right is conditioned on something other than the passage of time (for example, Alfa Laval’s future performance). It could be balanced invoicing relating to satisfied performance obligations that have not yet been invoiced (where the revenue recognition is ahead of the progress invoicing) and inventory linked to revenue recognised over time (like work in progress).
A contract liability is Alfa Laval’s obligation to transfer goods or services to a customer for which Alfa Laval has received consideration (or the amount is due) from the customer. It could be advance payments and balanced invoicing relating to unsatisfied performance obligations that have been invoiced (where the progress invoicing is ahead of the revenue recognition).