I have some problem with automatic deferred accounting process.
In account setting, the Deferred accounting settings is as below :
- Book deferred entries based on : month
- Automatically Process Deferred Accounting Entry : checked
Deferred revenue in Sales invoice has been enabled and created, start date and end date of the service is also filled. But I can’t find any amortization entry related with this deferred revenue.
Is there any additional setting need to setup to activate this automatic process deferred accounting entry?
Its automatically create the entries based on the revenue and the how the booking entries is based on … in this case months. have a look at the manual for example
Thank you for your response. I already follow the manual example, but still, I can’t find any amortization entry related with this deferred revenue.
Could you kindly elaborate more on this?
When you set for automatic deferred accounting , the system creates a background job (based on the start and end dates) to create the GL or Journal entry at the end of each month (since you have selected months). As far as I understand the system doesn’t generate a table which shows how the amortization is done like how its done for Depreciation … As this is a straight line basis.
So if you have a deferred income of say $12000 and you want them deferred in months. Then at the end of each month the system generates a GL/Journal entry of $1000 automatically in the background
Thank you for your prompt response and explanation.
The things my company do now is: add process deferred accounting for related month in example 1 Aug - 31 Aug 2022, the amortization was run automatically but need user initiation.
Although we have enabled the Automatically Process Deferred Accounting Entry, and enabled the deffered revenue (in invoice) also set the start date and end date in example : Agt 1’ 2022 - July 31’ 2022. we can’t find GL/journal entry amounted to $1000 (fo example) created by the system in the end of each month.
Is there any additional setting or information that we should setup for this to run automatically without user initation like what we do now?
Thank you for your response. Already checked that.
At this point, we decide to initiate the process monthly.