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FirstBIT ERP provides the functionality of processing of expense and revenue deferrals. The functionality of deferred expenses becomes available once you select the Enable Deferred Expenses option on the Administration > Settings > General Settings form. With this functionality turned on, you will be able to create deferred expenses, specify their parameters, and process them according to their parameters. Similarly, you can turn on the functionality of deferred revenues on the Administration > Settings > General Settings form and be able to correctly account for any services that are billed to the customers and will be rendered during multiple periods.

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 include deferred revenues in month-end processing, select the Calculate Current Expenses Revenues for Deferrals option on the Accounting > Service Tools > Month-End Closing form, then the Month-End Closing procedure will generate a Revenue Recognition document for 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.

Deferred Expenses Workflow

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 include deferred expenses in month-end 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 for 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.

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