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Profit & Loss Deferral Posting Method
The following examples demonstrate the distributions when the Deferral Posting Method for sales and purchase invoices is set to Profit & Loss. This option is available on the Posting Method FastTab on the SBS ARED Advanced Revenue & Expense Deferrals Setup.
Sales Invoice Processing
The following examples show the distribution when a sales invoice that includes a deferrable item is posted.
Single Deferral Item
Item A102-58 is sold with the extended price of 1,200.00
The following table shows the distribution
| AR | 1,200.00 | ||
| Sales | 1,200.00 | ||
| Sales Offset | 1,200.00 | ||
| Deferred Revenue | 1,200.00 |
Multiple Deferral and Non-Deferral Items
A sales invoice has the following deferral and non-deferral items.
| Item | Deferrable | Sales | Sales Offset | Deferred Revenue |
| A102-58 | Yes | Sales (A102) | Sales Offset (A102) | Deferred Revenue (A102) |
| A504-75 | Yes | Sales (A504) | Sales Offset (A504) | Deferred Revenue (A504) |
| A800-99 | No | Sales (A800) |
The following table shows the distribution:
| AR | 1,200.00 | ||
| Sales (A102) | 500.00 | ||
| Sales (A504) | 300.00 | ||
| Sales (A800) | 400.00 | ||
| Sales Offset (A102) | 500.00 | ||
| Deferred Revenue (A102) | 500.00 | ||
| Sales Offset (A504) | 300.00 | ||
| Deferred Revenue (A504) | 300.00 |
COGS and discount
Item A102-58 with 800.00 cost is sold with the extended price of 1,200.00 minus a 100.00 discount
The following table shows the distribution:
| AR | 1,200.00 | ||
| Sales | 1,200.00 | ||
| Sales Offset | 1,200.00 | ||
| Deferred Revenue | 1,200.00 | ||
| Discount | 100.00 | ||
| Discount Offset | 100.00 | ||
| Deferred Discount | 100.00 | ||
| AR | 100.00 | ||
| COGS | 800.00 | ||
| COGS Offset | 800.00 | ||
| Deferred COGS | 800.00 | ||
| Inventory | 800.00 |
Purchase Invoice Processing
The following example shows the distribution when a purchase invoice that includes a deferrable item is posted.
Single Deferral Item
Item A102-58 is purchased with the extended price of 1,200.00
The following table shows the distribution:
| Expense | 1,200.00 | ||
|
AP |
1,200.00 | ||
| Deferred Expense | 1,200.00 | ||
| Expense Offset | 1,200.00 |
