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Deferral Defaults

Modules > Advanced revenue & expense deferrals > Setup > Deferral defaults

Use this page to do the following: 

  • Set up default deferral accounts for items and assign default templates to deferrable items.
  • Set up deferral accounts for charges and assign templates to the deferrable charges.

Defer by Item

For transactions with an item (for example, sales orders), you can assign accounts and templates to specific items and customers. These settings becomes the default values used when a transaction is deferred. To make the transaction deferrable by default, the items must also be set in theDeferrable Items page.

Defer by Account

For transactions without items (for example, general journals), you can specify the deferral accounts. When these accounts are used in a transaction line, the transaction is automatically marked as deferred, and the corresponding template and recognition account is assigned to the transaction line.

All transaction types (Sales Order, Purchasing, General Journal, etc. tabs)

The accounts on this page are the main accounts without financial dimensions. The financial dimensions of the recognition account are from the customer or item based on standard Microsoft Dynamics 365 for Finance and Operations functionality.

Each template line must have either a straight line template or an event based template, but not both.

For Sales Orders

To specify the deferral default values for sales orders, follow these steps:  

  1. Select the Sales order tab.
  2. Select the deferral type (e.g., revenue, discount), and add a line as follows: 
    1. Select Add.
    2. Select the Item code, which determines how the deferral default values are applied.
      • If Item code is Table or Group, select the Item relation.
      • If Item code is Category, select the Category relation.
      • If Item code is All, you do not need to select the additional relation because the default values applies to all applicable records.
    3. Select how the Account code is applied.
      • If Account code is Table or Group, select the Account relation.
      • If Item code is All, you do not need to select the additional relation because the account applies to all applicable records.
    4. Select the Main account for the deferral.
    5. If on the Advanced Revenue & Expense Deferrals Parameters page Deferral posting method is Profit and loss, select the Initial revenue account and Revenue offset account.
    6. If on the Advanced Revenue & Expense Deferrals Parameters page Short-term deferral method is Rolling periods or Fixed year, select the Short-term deferral account.
  3. For a template, add a line as follows: 
    1. Select Add.
    2. Select the Item code, which determines how the deferral default values are applied.
      • If Item code is Table or Group, select the Item relation.
      • If Item code is Category, select the Category relation.
      • If Item code is All, you do not need to select the additional relation because the default values applies to all applicable records.
    3. Select how the Account code is applied.
      • If Account code is Table or Group, select the Account relation.
      • If Item code is All, you do not need to select the additional relation because the account applies to all applicable records.
    4. Select the Straight line template or the Event based template.
  4. Select Save.

For Purchase Orders

To specify the deferral default values for purchase orders, follow these steps:

  1. Select the Purchasing tab.
  2. Select the deferral type (e.g., expense, discount), add a line as follows: 
    1. Select Add.
    2. Select the Item code.
      • If Item code is Table or Group, select the Item relation.
      • If Item code is Category, select the Category relation.
      • If Item code is All, you do not need to select the additional relation because the default values applies to all applicable records.
    3. Select how the Account code is applied.
      • If Account code is Table or Group, select the Account relation.
      • If Item code is All, you do not need to select the additional relation because the account applies to all applicable records.
    4. Select the Main account for the deferral.
    5. If on the Advanced Revenue & Expense Deferrals Parameters page Deferral posting method is Profit and loss, select the Initial revenue account and Revenue offset account.
    6. If on the Advanced Revenue & Expense Deferrals Parameters page Short-term deferral method is Rolling periods or Fixed year, select the Short-term deferral account.
  3. For Template, add a line as follows: 
    1. Select Add.
    2. Select the Item code.
      • If Item code is Table or Group, select the Item relation.
      • If Item code is Category, select the Category relation.
      • If Item code is All, you do not need to select the additional relation because the default values applies to all applicable records.
    3. Select how the Account code is applied.
      • If Account code is Table or Group, select the Account relation.
      • If Item code is All, you do not need to select the additional relation because the account applies to all applicable records.
    4. Select the Straight line template or Event based template.
  4. Select Save.

For General Journal

To specify the deferral default values for general journal entries, follow these steps: 

  1. Select the General journal tab.
  2. For Deferral, add a line as follows: 
    1. Select Add.
    2. If on the Advanced Revenue & Expense Deferrals Parameters page Short-term deferral method is Rolling periods or Fixed year, select the Short-term deferral account.
    3. Select the Deferral account.
    4. Select the Recognition account.
    5. If on the Advanced Revenue & Expense Deferrals Parameters page Deferral posting method is Profit and loss, select the Initial revenue account and Revenue offset account.
    6. Select the Straight line template or Event based template.
  3. Select Save.

For Free Text

To specify the deferral default values for free text invoices, follow these steps:

  1. Select the Free text invoice tab.
  2. For Deferral, add a line as follows: 
    1. Select Add.
    2. Select how the Account code is applied.
      • If Account code is Table or Group, select the Account relation.
      • If Item code is All, you do not need to select the additional relation because the account code applies to all applicable records.
    3. Select the Deferral account.
    4. If on the Advanced Revenue & Expense Deferrals Parameters page Short-term deferral method is Rolling periods or Fixed year, select the Short-term deferral account.
    5. Select the Recognition account.
    6. If on the Advanced Revenue & Expense Deferrals Parameters page Deferral posting method is Profit and loss, select the Initial revenue account and Revenue offset account.
    7. Select the Straight line template or Event based template.
  3. Select Save.

For Invoice Journals

To specify the deferral default values for invoice journal entries, follow these: 

  1. Select the Invoice journal tab.
  2. For Deferral, add a line as follows: 
    1. Select Add.
    2. Select how the Account code is applied.
      • If Account code is Table or Group, select the Account relation.
      • If Item code is All, you do not need to select the additional relation because the account code applies to all applicable records.
    3. Select the Deferral account.
    4. If on the Advanced Revenue & Expense Deferrals Parameters page Short-term deferral method is Rolling periods or Fixed year, select the Short-term deferral account.
    5. Select the Recognition account.
    6. If on the Advanced Revenue & Expense Deferrals Parameters page Deferral posting method is Profit and loss, select the Initial revenue account and Revenue offset account.
    7. Select the Straight line template or Event based template.
  3. Select Save.

For Projects

To specify the deferral default values for projects, follow these steps: 

  1. Select the Project fee/Project item/Project hour/Project expense tab.
  2. For Deferred revenue, Deferred expense, or Deferred consumption add a line as follows: 
    1. Select Add.
    2. Select the Valid for option for the project.
      • If Valid for is Table or Group, select the Project relation.
      • If Valid for is Category, select the Category relation.
      • If Valid for is All, you do not need to select the additional relation because the default value is applied to all projects.
    3. Select the Main account.
    4. If on the Advanced Revenue & Expense Deferrals Parameters page Deferral posting method is Profit and loss, select the Initial revenue account and Revenue offset account.
    5. If on the Advanced Revenue & Expense Deferrals Parameters page Short-term deferral method is Rolling periods or Fixed year, select the Short-term deferral account.
  3. For Template, add a line as follows:
    1. Select Add.
    2. Select the Valid for option for the project.
      • If Valid for is Table or Group, select the Project relation.
      • If Valid for is Table or Group, select the Category relation.
      • If Valid for is All, you do not need to select the additional relation because the default value is applied to all projects.
    3. Select the Straight line template or Event based template.
  4. Select Save.

Fields

This page contains the following fields: 

Field Description
Sales order tab/Purchasing tab

Specify the deferral defaults for the different types of amounts or create templates: 

  • Sales tab: Deferred revenue, Deferred discount, Deferred consumption, Template, Deferred charge, Charge template
  • Purchasing tab: Deferred expense and deferred discount.
Item code

Select how the deferral default values are applied: 

  • Table: Applies the deferral default values to a single item, specified in the Item relation field.
  • Group: Applies the deferral default values to an item group, specified in the Item relation field.
  • Category: Applies the deferral default values to an item category, specified in the Category relation field. This option is available in the Sales Order or Purchasing tabs only.
  • All: Applies the deferral default values to all items and item groups or categories.
Item relation

Select the item code or item group. Available when Item code is Table or Group.

When Item code is All, this option is not available since the main account that you select applies to all items.

Category relation

Select the category. Available when Item code is Category.

When Item code is All, this option is not available since the main account that you select applies to all items.

Account code

Select how the account code is applied:

  • Table: Applies to a single customer specified in the Account relation field.
  • Group: Applies to a customer group, specified in the Account relation field.
  • All: Applies to all customers.
Account relation

Depending on the value of the Account code, select the customer account or customer group. When Account code is All, this option is not available since the main account that you select applies to all customers.

Main account

Select the main account for the deferral.

Initial revenue account

Select the account for the initial revenue.

Available only when Deferral posting method is Profit and loss on the Advanced Revenue & Expense Deferrals Parameters page.

You can set this account for the sales Deferred revenue, Deferred discount, and Deferred consumption accounts. Also, for the purchasing Deferred expense account.

Revenue offset account

Select the account for offsetting revenue.

Available only when Deferral posting method is Profit and loss on the Advanced Revenue & Expense Deferrals Parameters page.

You can set this account for Deferred revenue, Deferred discount, and Deferred consumption. Also, for the purchasing Deferred expense account.

Short-term deferral account

Select the account for the short-term deferral.

Not available when Short-term deferral method is None on the Advanced Revenue & Expense Deferrals Parameters page.

General journal tab

Specify the deferral defaults for deferred expense amounts. 
Deferral account

Select the deferral account for general journal entries.

Recognition account

Select the recognition account used for recognizing deferral amounts.

Initial revenue account

Select the account for the initial revenue.

Available only when Deferral posting method is Profit and loss on the Advanced Revenue & Expense Deferrals Parameters page.

Revenue offset account

Select the account for offsetting revenue.

Available only when Deferral posting method is Profit and loss on the Advanced Revenue & Expense Deferrals Parameters page.

Straight line template

Select the default template used for straight line calculations.

Event based template

Select the default template used for event-based processing.

Free text invoice tab

This tab is available only when the Free text invoice functionality is purchased and the license code is loaded.

Specify the deferral defaults for deferral amounts. 
Account code

Select how the account code is applied:

  • Table: Applies to a single customer specified in the Account relation field.
  • Group: Applies to a customer group, specified in the Account relation field.
  • All: Applies to all customers.
Account relation

Depending on the value of the Account code, select the customer account or customer group. When Account code is All, this option is not available since the main account that you select applies to all customers.

Deferral account Select the deferral account used for free text invoice transactions.
Recognition account Select the recognition account used for recognizing deferral amounts.
Initial revenue account

Select the account for the initial revenue.

Available only when Deferral posting method is Profit and loss on the Advanced Revenue & Expense Deferrals Parameters page.

Revenue offset account

Select the account for offsetting revenue.

Available only when Deferral posting method is Profit and loss on the Advanced Revenue & Expense Deferrals Parameters page.

Straight line template

Select the straight line template that you want to use as the default for free text invoice transactions.

You must select a straight line template or an event based template, but cannot select both. If you select an Event based template, this value is cleared.

Event based template

Select the event based template that you want to use as the default for free text invoice transactions.

You must select a straight line template or an event based template, but cannot select both. If you select an Straight line template, this value is cleared.

Invoice journal tab

This tab is available only when the Invoice journal functionality is purchased and the license code is loaded.

Specify the deferral defaults for deferral amounts. 
Account code

Select how the account code is applied:

  • Table: Applies to a single vendor, specified in the Account relation field.
  • Group: Applies to a vendor group, specified in the Account relation field.
  • All: Applies to all vendors.
Account relation Depending on the value of the Account code, select the vendor account or vendor group. When Account code is All, this option is not available since the main account that you select applies to all vendors.
Deferral account Select the deferral account used for invoice journal transactions.
Recognition account Select the recognition account used for recognizing deferral amounts.
Initial revenue account

Select the account for the initial revenue.

Available only when Deferral posting method is Profit and loss on the Advanced Revenue & Expense Deferrals Parameters page.

Revenue offset account

Select the account for offsetting revenue.

Available only when Deferral posting method is Profit and loss on the Advanced Revenue & Expense Deferrals Parameters page.

Straight line template

Select the straight line template that you want to use as the default for invoice journal transactions.

You must select a straight line template or an event based template, but cannot select both. If you select an Event based template, this value is cleared.

Event based template

Select the event based template that you want to use as the default for invoice journal transactions.

You must select a straight line template or an event based template, but cannot select both. If you select an Straight line template, this value is cleared.

Project fee/Project item/Project hour/Project expense tab

This tab is available only when the Project functionality is purchased and the license code is loaded.

Specify the deferral defaults for the following types of amounts:

  • Project fee: Deferred revenue
  • Project hour: Deferred revenue, Deferred expense, or Template
  • Project item: Deferred revenue or Deferred consumption
  • Project expense: Deferred revenue, Deferred expense, or Template
Valid for

Select how the project code is applied:

  • Table: Applies to a single project, specified in the Account relation field.
  • Group: Applies to a project group, specified in the Account relation field.
  • All: Applies to all projects.
Project relation Depending on the value of the Valid for, select the project ID or project group. When Valid for is All, this option is not available since the main account that you select applies to all projects.
Valid for

Select how the category code is applied:

  • Table: Applies to a single category, specified in the Account relation field.
  • Group: Applies to a category group, specified in the Account relation field.
  • All: Applies to all categories.
Category relation Depending on the value of the Valid for, select the category or category group. When Valid for is All, this option is not available since the main account that you select applies to all categories.
Main account

Select the main account for the deferral.

Initial revenue account

Select the account for the initial revenue.

Available only when Deferral posting method is Profit and loss on the Advanced Revenue & Expense Deferrals Parameters page.

Revenue offset account

Select the account for offsetting revenue.

Available only when Deferral posting method is Profit and loss on the Advanced Revenue & Expense Deferrals Parameters page.