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Deferred From/To: Specify the time frame for deferring the expense.
Calculation Method: Select how to calculate the deferral:
- Evenly by Month: Splits the amount evenly across the deferral months.
- By Calendar Day: Splits the amount based on the number of days in each month.
- Manually: Allows you to enter specific amounts for each month.
GL Account: Choose the account for deferred expenses.
Expense GL Account: Select the account to transfer the balance to the profit and loss statement at the end of the month.
Expense Item: Choose the relevant expense item.
The icon below helps you identify whether these expenses are being deferred for the specified period or not.
To manage deferred expenses automatically, perform the month-end closing and then review the expense values in the deferred expense report within the Accounting Module.
For this example, after completing the month-end closing for September, ensure you select Calculate Current Expense for Deferrals before clicking Execute Month-End Closing.
Once it is successfully executed, Expense Recognition documents are generated, they list the deferred expenses that needs need to be recognized as actual expenses.
AED 10,000 was equally divided over 3 months, resulting in a monthly amount of AED 3,333.33.
You can view this data in the report as well.
To adjust amounts, check Besides Automatic Processing, the expense can be recognized manually. To do so, go to the expense recognition document, and enable the Manual Processing box.
Note that edited amounts won’t be auto-updated by the month-closing process, requiring manual posting.
For expenses with the Manual calculation method, check the Manual Processing box and click Click Fill in the Document to add relevant expenses. You can remove unneeded lines and enter current expense amounts.
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- Initial Deferred Amount: Original deferred amount.
- Remaining Deferred Amount: Amount deferred at the start of the current period.
- Current Expense Amount: Amount recognized as expenses this period. Type this value manually as needed.
- Department, Project, and Project Task: Associated department and project/task.
- Expense GL Account: Account used for recording recognized expenses.
Use You can use the Fill in the Current Line button to reset revert any changes made to a the selected line . Remember to save and post the documentreset the data to its original state.
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