About recognition of deferrals in previous periods

Introduction

In Visma Net, you can enter documents that require recognition of revenue or expenses in previous financial periods or in periods that are earlier than the period of the document date. When these documents are released, the system generates recognition transactions for each line of the document according to the specific set of settings of a deferral code specified for a line.

Deferral codes and recognition methods

You can process the recognition of deferrals in different ways, depending on the recognition method that you specify for each particular deferral code.
You configure deferral codes in the Deferral codes (DR202000) window.
Depending on the selected recognition method, you specify the particular set of settings for the deferral code.

You use the following deferral methods:

Recognise deferred revenue in previous periods	Recognise deferred revenue and expenses in previous and future periods
Flexible by periods	Evenly by periods
Prorate by days	Prorate by days
Flexible by days in period	Evenly by days in period
	On payment

Recognition period

To define the start recognition period, specify the Start offset parameter while you configure a deferral code.
This parameter defines the number of periods between the period of the document date and the start recognition period or the period when recognition process starts:

• If you specify a negative value in this field (for example, –1), the recognition period will start one period earlier than the period of the document date.

• If you specify a positive value in this field (for example, 1), the recognition will start one period later than the period of the document date.