Deferral functionality allows the user to automate the process of deferring revenues and expenses over a pre-defined schedule. This is available for sales and purchasing documents, as well as general journals.
The deferrals can be set up on:
- General Journals
- Sales: Sales invoices, sales credit memos, sales orders, and sales return orders
- Purchasing: Purchase invoices, purchase credit memos, purchase orders, and purchase return orders
The deferrals can be set-up in numerous fashions allowing for any scenario; the set-up choices include:
- Straight-line, pro-rated to number of days of deferral
- Equal per period, very strict
- Days per period
- User defined
Posting restrictions on deferrals are honored. And you may use deferrals after an item is posted but only in the general journal; it wouldn’t tie into the document after posting.
Can it work on my accounting periods?
Yes, deferrals can do a 4.4.5 schedule as the scheduling is based on your accounting periods. So companies who divide each quarter into 5-4-4 weeks or 4-5-4 weeks, can do deferrals as it is based on your needs.
And what is most exciting about the deferrals posting is its visibility in reporting, but also once the deferral is set up, it’s automated. . .making your job easier.
Our Advice to CFO’s who want deferrals for revenue & expenses is to implement NAV 2016, while it is on sale.