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Deferred expenses can be created for such billed services directly from the invoices received from suppliers—you can click the Create / Cancel Deferral button on the Services tab to open the Deferred Expenses dialog box where you can enter the deferral parameters.
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To set up automatic processing, select the Calculate Current Expenses for Deferrals option on the Accounting > Service Tools > Month-End Closing form, then the Month-End Closing procedure will generate an Expense Recognition document that includes any deferred expenses with these (By Month and By Calendar Days) calculation methods. The generated document lists the deferred expenses for which the specific amounts calculated by these methods should be recognized as actual expenses in the current month; the document is posted automatically. If needed, you can remove some of the deferred expenses from the automatically generated document to a manually created one and manually enter the amounts for recognition in the current month (for more details, see Expense Recognitions).
If you need to change the deferral parameters for any deferred expenses, you can create a document of the Deferred Expense Adjustment type. You can change the following parameters of deferrals: deferral end date, calculation method, GL accounts associated with the deferral, and parameters for expense analytics.
For reports that provide complete information on deferred expenses currently available in the system, refer to Reports on Deferred Expenses and Revenues.
Deferred Revenues Workflow
Deferred revenues (DRs) can be created for sold services directly from the invoices—you can click the Create / Cancel Deferral button on the Inventory and Services tab to open the Deferred Revenue dialog box where you can enter the deferral parameters.
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To set up automatic processing, select the Calculate Current Expenses for Deferrals option on the Accounting > Service Tools > Month-End Closing form, then the Month-End Closing procedure will generate a Revenue Recognition document that includes any deferred revenues with these (By Month and By Calendar Days) calculation methods. The generated document lists the deferred revenues for which the specific amounts calculated by these methods should be recognized as actual revenues in the current month; the document is posted automatically. If needed, you can remove some of the deferred revenues from the automatically generated document to a manually created one and manually enter the amounts for recognition in the current month (for more details, see Revenue Recognitions).
If you need to change the deferral parameters for any deferred revenues, you can create a document of the Deferred Revenue Adjustment. You can change the following parameters of deferrals: deferral end date, calculation method, GL accounts associated with the deferral, and parameters for income analytics.
For reports that provide complete information on deferred revenues currently available in the system, refer to Reports on Deferred Expenses and Revenues.