Straight Line Deferrals

To be able to use deferral schedules, ensure the system administrator performs the setup as described on the Advanced Revenue & Expense Deferrals Module Setup.  

Deferral schedules can be created from sales or purchasing documents, billing schedules, or journals.

These steps are for a basic straight line deferral schedule scenario. For alternate scenarios, see the following articles: 

• Event-Based Deferrals

Create from a Sales or Purchasing Document

When working with deferral schedules, follow this general workflow: 

1. Create a sales (order or invoice) or purchasing (order or invoice) document.
2. For the item, select SBS Options > Advanced Deferral.
3. Complete the Advanced Deferral page for the sales or purchase transaction as follows:
   1. For items that are not deferrable by default, turn on the Deferral Item option.
      For items that are deferrable by default, this option is already turned on.
   2. Review the accounts for the deferral and recognition amounts and change as needed. The accounts available depend on the type of document you create.
   3. Set Schedule Type to Straight Line, and edit any of the straight line options as needed.

   For an event-based deferral schedule, set Schedule Type to Event Based, and edit the event header and lines options.

   4. Optional. Select Actions > Process > Preview to review the deferral schedule.
   5. Close the preview, and then close the Advanced Deferral page to return to the sales or purchase document.
4. Back on the sales or purchase document page, create and post the invoice.
   The deferral schedule is created after the invoice is posted.
5. Review and process any actions on the deferrable schedule as needed

Create from a Billing Schedule

To create a deferral schedule from a billing schedule, open the SBS ARCB Billing Schedule Card, follow the steps for creating a billing schedule, and incorporate the following: 

1. If you want the start and end dates of the deferral schedule to be the same as the billing schedule, select Align Deferral to Billing in the header.
2. When adding a line item to the Schedule Lines, select Manage > Advanced Deferral Options.
3. On the SBS ARED Transaction - Billing Schedule (Advanced Deferrals),
   1. For items that are not deferrable by default, turn on the Deferred option.
      For items that are deferrable by default, this option is already turned on.
   2. Review the accounts for the deferral and recognition amounts and change them as needed.
   3. Set Schedule Type to Straight Line, and edit any of the straight line options as needed.

   For an event-based deferral schedule, set Schedule Type to Event Based, and edit the event header and lines options.

   4. Return to the billing schedule.
4. Save the billing schedule and create and post the first invoice for the billing schedule.
   The deferral schedule is created after the invoice is posted.
5. Review the newly created deferral schedule and process any actions as needed.