Processing Deferred Income

Some Of the nominals and ledgers used in this topic may be different to those in your chart of accounts.

Before posting any deferredincome, it is essential to check that all the accounting periods within the deferral time frame exist, and have been opened.Deferredincome is not posted to the correct periods if this is not the case, and this can be time consuming to rectify.

If you experience any problems with deferred income as a consequence of accounting periods being closed or having the wrong access level, please see Dealing with Deferred Income Posted to the Wrong Period.

Deferred income is typically recorded for sales invoices, or sales credit notes.

1. To post deferred income, complete the applicable document input form in the usual way. For more information, please see Completing Document Input Forms.

2. Enter the start and end dates for the deferred income. The dates entered must be in dd/mm/yyyy-dd/mm/yyyy format, for example, 01/11/2022-01/10/2022.

3. When you have entered the required details, press F5 to post the document. Once posted, the system automatically creates a DETR - Deferred Income Transfer to Bal Sheet document, which transfers the balance from the applicable income nominal and account into the income nominal on the balance sheet.

4. Based on the deferral start and end dates previously entered, the system calculates the number of accounting periods within the time frame, together with the amount that should be allocated to each accounting period. A DERL - Deferred Income Release From Bal Sheet document is then posted for each applicable accounting period.