The current expenses for Deferrals can be calculated automatically by the Month-End Closing process or manually.
The document Closing the month shows a warning when calculating the current expenses for Deferrals
This feature is available if the Enable Deferred Expenses option is selected in Administration > Settings > General Settings.
When enabled, the Expenses Recognition document is created for deferrals using the By Month and By Calendar Days calculation methods. This document details the deferred expenses that need to be recognized as actual expenses in the current month based on these methods.
The Closing the Month document may display a warning when calculating current expenses for deferrals.
The details of the error will be available at the bottom of the page. For example, there is not enough balance. Looks like the deferral expense should be AED 5,000 but instead only 2,000 is available.
Open the statement of account from the Accounting reports, select account 2090000 (Deferred Expenses) using the Account filter, and then filter the report by entity and Deferred Expenses.
The report shows a Debit Note transaction posted on July 21, reflecting the adjustment to the Invoice Received amount.
Upon review, the transaction should have been posted within the deferred period instead of afterward. With deferral expenses calculated evenly at 5,000 per month, and the invoice adjustments already reducing the balance to 2,000, posting within the period would ensure the adjustment is considered and the deferral expense value is recalculated accordingly.
Change the date to the correct one as needed.
Execute the month-end closing; it will complete successfully.
Verify your steps by generating the statement of account for card 2090000 (Deferred Expenses).
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