SBS ARED Advanced Revenue & Expense Deferrals Setup

Specify whether the number of days in a period is taken into consideration when calculating the amount in each period for a deferral schedule.

• On: The amount for each period is the same regardless of the number of days in the period, except for partial periods (such as at the beginning or end of a deferral schedule) which will be prorated.
• Off: The amount is calculated based on the number of days in each period. Default setting.

You can override this setting at the transaction level.

Select whether to consolidate deferral schedule lines for prior periods.

• On: If the deferral start date is in a period before the transaction date, all amounts up to and including the period of the transaction date are combined into a single deferral schedule line. Default setting.
• Off: The amounts from all periods are in separate deferral schedule lines regardless of the date.

If the deferral start date is in the same or a later period as the transaction date, this option has no effect.

You can override this setting at the transaction level.

Select whether the deferral schedule is created based on a template or the start and end dates of the billing schedule.

• On: Creates the straight-line deferral schedule is based on a template.
• Off: Creates the straight line schedule is created based on the start and end dates of the billing schedule, where the billing date is the deferral start date and the billing end date is the deferral end date. The deferral amount is divided among the billing periods based on the billing frequency selected.

You can override this setting at the transaction level.

Select whether any journal entries created by ARED, such as those from recognition processing, should be automatically posted.

• On: Automatically posts journal entries created by ARED. Default setting.

Tip: By selecting this option, you can avoid and prevent any accounting inconsistencies caused by manual changes to vouchers.

• Off: Does not automatically post journal entries created by ARED. You must manually post any journals.

Select whether to consolidate recognition vouchers by default.

• On: Creates a single voucher for all recognition lines with the same date. All lines in a voucher with the same account are consolidated into a single line.
• Off: Creates a voucher for each recognition line. Default setting.

You can override this setting on the SBS ARED Recognition Process page.

Select to which account the COGS recognized amount is credited.

• On: Applies a credit to the accumulated amortization account for the associated COGS deferral account for the recognized amount.
• Off: Applies a credit to the deferred COGS account for the recognized amount.

Select the deferral default date.

• Document Date: The deferral start date would be according to the document date.
• Posting Date: The deferral start date would be according to the posting date.

Select the rule to apply to the transaction date to get the start date for the deferral schedule: 

• Transaction Date: Uses the transaction date as the start date. Default.
• 1st day:  Uses the 1^st of the current month as the start date. If the transaction date is the 1^st of any month, then the 1^st of the current month is the start date.
• 1st day of next month: Uses the 1^st of the next month as the start date. If the transaction date is on the 1^st, the transaction date is used, otherwise the 1^st of the following month is used.
• Rule of 15: If the transaction date is between the 1^stand the 15^th, uses the 1^st of the current month as the start date. If the transaction date is the 16^thor later, uses the 1^st of the next month as the start date.

You can override this setting at the transaction level.

Select the short-term deferral method: None (default), Rolling periods, or Fixed year.

For information on how these settings work, see Short-Term Deferral Calculation.

Select which deferral schedule values appear on the recognition journal description on the General Journals page.

• Deferral schedule description
• Line billing period
• Number and description of the item or General Ledger
• Document number

The values are added to the description in the order as it appears in this list.

Select the method used to create deferral transactions: 

• Balance Sheet: Uses the balance sheet posting method to create deferral transactions. Default option.

• Profit & Loss: Uses the profit and loss posting method to create deferral transactions.

Select whether separate deferral schedules are created for the discount and the sales order amounts:

• Defer Discount Separately: Discount amount is kept separate from revenue amount.

When a sales order is created and then posted, two deferral schedules are created, and the discount and revenue amounts are posted to different deferral accounts.

• Include Discount in Net Revenue: Discount amount is combined with revenue amount. One deferral schedule is created and both the discount and revenue amounts are posted to the same deferral account.

When a sales order is created and then posted, one deferral schedule is created and both the discount and revenue amounts are posted to the same deferral account.

Select how discount deferral options appear on a purchasing invoice: 

• Discount Separately: Discount amount is kept separate from purchase amount.

When a purchase transaction is created and then posted, two deferral schedules are created, and the discount and purchase amounts are posted to different deferral accounts.

• Include Discount in Net Direct Cost:  Discount amount is combined with net direct cost amount. One deferral schedule is created and both the discount and direct cost amounts are posted to the same deferral account.

When a purchase transaction is created and then posted, one deferral schedule is created and both the discount and purchase amounts are posted to the same deferral account.

If you require user-defined field boxes for saving additional information, specify the name of the field box that you want to add. These field boxes appear in the header section when you add a billing or a deferral schedule. The available formats for the user-defined field boxes are as follows: 

• Text field boxes 1 to 5 and 9 to 13
• Date field boxes 6 and 14 to 17
• Integer field boxes 7 and 18
• Boolean field  boxes 8 and 19

The user-defined fields for billing schedules are independent and unrelated to the user-defined fields for deferral schedules.

If you require user-defined field boxes for saving additional information, specify the name of the field box that you want to add. These field boxes appear in the lines section when you add a billing or deferral schedule. The available formats for the user-defined field boxes are as follows: 

• Text field  boxes 1 to 5 and 9 to 13
• Date field boxes 6 and 14 to 17
• Integer field boxes 7 and 18
• Boolean field boxes 8 and 19

The user-defined fields for billing schedules are independent and unrelated to the user-defined fields for deferral schedules.