About deferral code setup

Introduction

You use deferral codes for recognition of revenues and expenses over multiple financial periods. The system will then use them to create deferral transactions on release of documents (such as invoices) in which these deferral codes are specified.

Configuring deferral codes

You configure a deferral code by using the Deferral codes (DR202000) window. For each code, you specify the following settings:

• Recognition method:
  The method that defines how an amount will be distributed over the specified financial periods.
• Code type:
  The type of the code, which indicates whether it will be used for expense or revenue deferrals.
• Deferral account:
  The general ledger account to hold the deferred revenue (liability account) or expense (asset account) amount.
• Deferral sub.:
  The subaccount (if applicable in your system), for proper tracking of deferral transactions.
• Recognise now %:
  The percentage of the document amount (or line amount) that can be recognised immediately.
• Schedule settings, Every x periods:
  The frequency of generating the recognition transactions.
• Document date selection (Start of the financial period, End of period, Fixed day in the period):
  The exact day when the documents for a recognition transaction will be generated.

Once you have specified all required settings based on the selected recognition method, the code will be available in the list of deferral codes that can be assigned to documents and used by the system for generating recognition schedules.

If you do not assign a deferral code to an item, you can still add a deferral code to the required line of a document on the Document details tab when you enter a document into the system.

The list of available deferral codes that you have created in Visma Net are available on the Deferral settings tab of the Stock items (IN202500) window.