Microsoft Dynamics NAV 2016 offers the ability to automatically defer revenues and expenses over a predefined schedule, enabling companies to easily recognize revenues and expenses in periods other than the period in which the transaction is posted.
The deferral functionality provides several user benefits, including:
- Enabling additional financial functionality in Microsoft Dynamics NAV.
- Greatly reducing the time and effort required to defer revenues and expenses.
- Enabling reporting on deferred amounts for customer, vendor, and account ledgers.
- The deferral functionality is available on purchasing and sales documents, as well as general journals.
The first step in setting up deferral functionality is to create a deferral template.
Deferral templates allow us to define settings that will create a default deferral schedule for a document.
The default schedule is built for the document based on the settings defined in the template.
From the Search box find Deferral Template and use related Link to open the Template Card.
Define the Template values as per the requirement for Expense/Revenue.
Period Description: uses %1..%6 to replace values as (1)Day, (2)Week, (3)Month, (4)Month Text, (5)Accounting Period Name, (6)Year
Users have the option to select a default deferral template for Resources, Items, and Accounts.
When the Resource, Item, or Account is selected on a document for which deferral functionality is available, the default deferral template will automatically be selected for the line.
Fill the Default Deferral Template on Invoicing FastTab for Item & Resource and for Accounts on Posting FastTab.
We have the option to view or modify the default deferral schedule created from the template in the Deferral Schedule page.
The user can either change the settings and re-calculate the schedule with new settings, or simply modify the lines of the schedule directly.
Schedule window will be as below:
The Sales Deferral Summary report provides a summary, for each customer, of deferred revenue. The amounts on the report are calculated as of the date entered for the report.
The Purchasing Deferral Summary report provides a summary, for each vendor, of deferred expenses. The amounts on the report are calculated as of the date entered for the report.
The G/L Deferral Summary report provides a summary, for each G/L account, of deferred expenses. The amounts on the report are calculated as of the date entered for the report.
I will come up with more details on this in my upcoming posts.