The Revenue and Expense Deferral module can be used can be used to allocate costs such as magazine subscriptions or maintenance contracts over the life of the agreement so you don’t have to absorb the entire cost for this in a single month on your income statement.
The first step in this process is to configure your deferral in the Deferral Setup Window.
Financial —> Setup —> Deferral
The options you make in this window will determine how the deferrals will function.
For example, the Default Calculation Method we chose is Days in Period. If you wanted to defer the revenue or expense evenly, you would have chosen the Equal Per Period option.
Once you have completed the Deferral Setup window, enter the transaction you want to defer.
This is accomplished in the Payables Transaction Entry window where you will enter the voucher for the cost of the subscription, contract, etc. you received.
Once you enter the voucher, click the Distributionsbutton to open the Payables Transaction Distribution Entry window.
From the distribution window, click on the distribution to defer (000-6780-000 in this example); and select Deferral from the Additional menu.
This will bring you to the Deferral Entry windowwhere you enter the information related to the deferral you’re looking to record.
The bottom of the window will show your deferral schedule.
You have the ability to can update the GL Posting Dates, Descriptions and Amounts displayed for the deferral schedule to customize the deferral to meet your needs.
When you finish entering your deferral information, click the OK button to return to the Payables Transaction Entry Distribution window. Click OK to return to the Payables Transaction Entry window.
Documents with revenue and expense deferrals post in the same manner but create additional deferral transactions based on the schedule you enter. These additional journal entries will be reflected on the General Posting Journal when you post you’re A/P voucher (or batch).
When you post the voucher, the following entries will post:
The amount will vary per month if you have selected an allocation method of number of days and remain consistent for each month if you have selected the allocation method of equal per period.
Hope that helps!
If you need help configuring your deferral, MIBAR can help! Get started by scheduling your free Dynamics GP consultation.
Need to make the move from Dynamics GP? Learn more about your options migrating from Dynamics GP.
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