Processing Deferrals

This chapter provides detailed information on how you can manage deferrals in Acumatica ERP.

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Recognition of Revenue and Expenses

You can assign a deferral code to a needed non-stock item on the Deferral tab of the Non-Stock Items (IN202000) form, so that when you enter that non-stock item in a detail line of a document, the system inserts the deferral code in the Deferral Code column of that line. If a deferral code is not assigned to a non-stock item, or if you want to override the deferral code that is filled in by the system, you can select a required one in the Deferral Code column in each required line when you enter a document.

Recognition of Deferrals in Previous Periods

In Acumatica ERP, you can enter documents (such as AR invoices) that require recognition of revenue or expenses in previous financial periods—that is, in periods that are earlier than the period of the document date. When these documents are released, the system generates recognition transactions for each line of the document according to the specific set of settings of a deferral code specified for a line.

Recognition of Revenue from Customer Contracts

Acumatica ERP supports the requirements of the following standards as well as their models of recognizing revenue:

Custom Deferral Schedules

During the initialization of your Acumatica ERP system, you may need to process deferrals that have been recognized only partially in your old system. You may also decide to perform recognition of deferrals for documents without deferral codes specified that have been already released. To satisfy these needs in Acumatica ERP, you can manually create a deferral schedule, and process the recognition of the required amounts.

To Link a Deferral Schedule to a Document

You use the Deferral Schedule (DR201500) form, which you access by clicking Add New Deferral Schedule on the Deferral Schedules (DR201510) form, to create a deferral schedule for a selected document.

Adjustment of Deferrals

Assume that you have a document (such as AR invoice), for which the deferral schedule has been already generated, but you need to cancel this document or to adjust its document amount. You cannot cancel or delete a document that is already being processed in the system. Instead, you can create an adjusting document, such as a credit memo for an invoice, or a debit adjustment for a bill, which allows you to either reverse the original document or to correct the document amount.

Creating an Adjustment Document

When you need to correct an amount of the document (for example, AR invoice), you can manually create an adjustment document, such as a credit memo, that will adjust the document amount and the amounts of recognition transactions of the deferred schedule generated for this document.

Processing Deferrals

[anchor|#section_wqb_3jv_vxb][anchor|#p_xqb_3jv_vxb]
This chapter provides detailed information on how you can manage deferrals in Acumatica ERP.
==In This Chapter{nestedtopics}==
*[HelpRoot_DeferredRevenue\DR__con_Revenue_Expenses_Recognition|Recognition of Revenue and Expenses]
*:You can assign a deferral code to a needed non-stock item on the '''Deferral''' tab of the [HelpRoot_FormReference\IN_20_20_00|Non-Stock Items] ([~/?ScreenId=IN202000|IN202000]) form, so that when you enter that non-stock item in a detail line of a document, the system inserts the deferral code in the '''Deferral Code''' column of that line. If a deferral code is not assigned to a non-stock item, or if you want to override the deferral code that is filled in by the system, you can select a required one in the '''Deferral Code''' column in each required line when you enter a document.
*[HelpRoot_DeferredRevenue\DR__con_Recognition_in_Previous_Periods|Recognition of Deferrals in Previous Periods]
*:In Acumatica ERP, you can enter documents (such as AR invoices) that require recognition of revenue or expenses in previous financial periods—that is, in periods that are earlier than the period of the document date. When these documents are released, the system generates recognition transactions for each line of the document according to the specific set of settings of a deferral code specified for a line.
*[HelpRoot_DeferredRevenue\DR__con_Recognition_of_Revenue_from_Customer_Contracts|Recognition of Revenue from Customer Contracts]
*:Acumatica ERP supports the requirements of the following standards as well as their models of recognizing revenue:
*[HelpRoot_DeferredRevenue\DR__con_Custom_Deferral_Schedules|Custom Deferral Schedules]
*:During the initialization of your Acumatica ERP system, you may need to process deferrals that have been recognized only partially in your old system. You may also decide to perform recognition of deferrals for documents without deferral codes specified that have been already released. To satisfy these needs in Acumatica ERP, you can manually create a deferral schedule, and process the recognition of the required amounts.
*[HelpRoot_DeferredRevenue\Dr__how_To_Link_Schedule_to_Document|To Link a Deferral Schedule to a Document]
*:You use the [HelpRoot_FormReference\DR_20_15_00|Deferral Schedule] ([~/?ScreenId=DR201500|DR201500]) form, which you access by clicking '''Add New Deferral Schedule''' on the [HelpRoot_FormReference\DR_20_15_10|Deferral Schedules] ([~/?ScreenId=DR201510|DR201510]) form, to create a deferral schedule for a selected document.
*[HelpRoot_DeferredRevenue\DR__con_Deferral_Adjustment|Adjustment of Deferrals]
*:Assume that you have a document (such as AR invoice), for which the deferral schedule has been already generated, but you need to cancel this document or to adjust its document amount. You cannot cancel or delete a document that is already being processed in the system. Instead, you can create an adjusting document, such as a credit memo for an invoice, or a debit adjustment for a bill, which allows you to either reverse the original document or to correct the document amount.
*[HelpRoot_DeferredRevenue\DR__con_Adjustment_Document_with_Deferrals|Creating an Adjustment Document]
*:When you need to correct an amount of the document (for example, AR invoice), you can manually create an adjustment document, such as a credit memo, that will adjust the document amount and the amounts of recognition transactions of the deferred schedule generated for this document.