Sales should be recorded when the goods or services have been transferred to the customer and the customer has obtained control over them, as per the 2017 revision of the Chinese Accounting Standard for Business Enterprises No. 14 - Revenue (ASC 14). This typically occurs when:

1. The entity has the right to receive payment for the goods or services.
2. The entity has transferred legal ownership to the customer.
3. The goods have physically been transferred to the customer.
4. The major risks and rewards of ownership have shifted to the customer.
5. The customer has accepted the goods or services.

In addition, the contract must meet certain conditions, such as both parties having approved the contract, clear rights and obligations, defined payment terms, commercial substance, and a high likelihood of collecting the consideration due.

For instance, in the context of construction services, revenue may be recognized over time as the control transfers to the customer, usually as the work progresses. In contrast, for a one-time sale of goods, revenue is typically recognized at the point of delivery