Deferral codes (DR202000)

This topic provides information about the elements in this window in Visma Net, such as fields, field values, buttons, and check boxes.

Introduction

By assigning a deferral code to a line of an invoice or a credit note, you can defer the amount and recognise it as a revenue or expense in appropriate portions over some number of periods. Once the document is released, a schedule for it is generated according to the recognition method associated with the code; you can use the Deferral schedule (DR201500) window to view these schedules.

## Search line in list window If you are in the list window, the first line in the table is a search line. Each column has a search field which you can click to search for or filter on specific values and narrow down the displayed table rows. You can search and filter in as many columns as you need to, to only display the results you want to view. There are two types of search fields: + White: here you can type a specific search term to display results in this column containing this exact value. If you search on several (partial) words, you can separate them by a space or **%** and get different results: + space: the result contains the words in any order, + **%**: the result contains the words in the specific order, and the **%** functions as a wildcard as well. + Grey: you can click this to open the column filter pop-up window where you can filter the results for this column.

What to do from this window

The top part

Here you can define a new code to account for deferred revenues or expenses. You can also select an existing code and view its details.

Element	Description
Deferral code	The unique code for the deferral type, max. 10 characters, both numbers and letters.
Description	The description of the deferral code.
Active	Deselecting this check box will remove this code from all look-ups where you can select a deferral code. If entered manually, you will get an error message that this code is inactive. If the code is in use on non-stock items, stock items, components, Invoice inbox rules, or any purchase or sales invoices/credit notes, you will get a message listing the items and rules where it is used and the number of the unreleased purchase or sales documents where it is used. Schedules, where the code is used, will not be affected by these inactive settings but be processed. Note In the list windows for Non-stock items, Stock items, and Invoice inbox rules, you can unhide the column Deferral code and filter on it to easily find the records using deferral code.\|
Deferred revenue from item	When this check box is selected, the deferred revenue of the code will be retrieved from the connected item.
Recognition method	The method used to distribute the document amount over the periods. The following options are available: Evenly by periods: With this method, equal amounts are distributed to all included periods. Evenly by periods, prorate by days: With this method, the amount to be recognised is distributed evenly among periods, with a proportional division among the first and last periods, which are counted as one full period. The instalment amounts for the first and last periods are calculated based on a full-period amount that is proportional to the number of days each instalment should cover. This method can be used for documents that have a date in the middle of a financial period. Evenly by days in period: With this method, the amount is calculated proportionally based on the exact number of days in the period. Flexible by periods, prorate by days: With this method, the amount to be recognised is distributed among periods, with a proportional division among the first and last periods. With this option, the start date of the first period and the end date of the last period are fixed; these dates are taken from the invoice details. Other than this, the method works in the same manner as the Evenly by periods, prorate by days method, described above. If this method is selected, the Start offset and the Occurrences fields are not available. Flexible by days in period: With this method, the start date and the end date of the period is taken from the invoice details. Other than this, the method works in the same manner as the Evenly by days in period method. If this method is selected, the Start offset and the Occurrences fields are not available. On payment: Before payment arrives, the recognition is planned evenly over the specified number of periods. Once a payment has been applied to the appropriate line of the original document, recognition is performed in the amount of the payment that is proportional to the line amount (if there are multiple lines). The recognition of the unpaid amount will be projected in portions that are calculated proportionally to the number of remaining periods, while the actual recognition of the next portion will be performed when the next payment arrives. This method can be applied to the revenue recognition only. When you select the On payment method in the Recognition method field, the Revenue option is selected by default in the Code type field and is not available for editing. You can find detailed examples of using each of these recognition methods at About recognition methods for deferred revenues or expenses.
Allow recognition in previous periods	When this check box is selected, the deferred revenue can be recognised in periods that are earlier than the period of the document (such as an invoice). The first recognition period is defined by the Term start date specified in the document. If this check box is cleared and the term start date is earlier than the document date, the system will generate recognition transactions for all required previous periods, but these transactions will be posted to the period of the document date. This check box is available only if the Flexible by periods, prorate by days or Flexible by days in period recognition method is selected in the Recognition method field.
Recognise now %	The percentage of the line amount (expense or income) to be recognised immediately on the document date in the first “recognise-now” transaction.
Start offset	The number of periods between the period of the transaction date and the next one. This field is not available if the Flexible by periods, prorate by days or Flexible by days in period option is selected in the Recognition method field.
From period	Choose the period from which you want the occurrence to start from.
Occurrences	The number of transactions through which recognition of the deferred revenue or expense will be performed. This number doesn’t include the first (“recognise-now”) transaction, and the amount to be divided among occurrences does not include the “recognise-now” amount. This field is not available if the Flexible by periods, prorate by days or Flexible by days in period method is selected in the Recognition method field.
Code type	The type of the deferral code, which can be one of the following options: Revenue For revenue recognition Expense For expense recognition You can use both recognition methods Flexible by period, prorate by days and Flexible by days in period for the code type Expense. When you select a deferral code with one of these recognition methods on a purchase invoice, you will be able to enter a start and end date.
Use deferral account from	The source of the deferral account that will be used for holding the deferred amounts until these amounts are fully recognised. The following options are available: Item Deferral code
Combine deferral sub. from	The rule of composing the deferral subaccount from other subaccounts associated with the document. The following mask options are available for the Revenue code type: E Subaccount associated with the employee D Subaccount associated with deferral code L Subaccount associated with the customer location S Subaccount associated with the salesperson I Subaccount associated with the item The following mask options are available for the Expense code type: E Subaccount associated with the employee D Subaccount associated with deferral code L Subaccount associated with the customer location I Subaccount associated with the item
Copy sub. from sales/expense sub.	When this check box is selected, the corresponding sales or expense subaccount is copied to the deferral subaccount.
Deferral account	The account used to hold the deferred amount until it is fully recognised. The account type should be specified as follows: A liability account for a deferral code of the Revenue type An asset account for a deferral code of the Expense type
Deferral sub.	The corresponding subaccount.

The Schedule settings section

Element	Description
Every x period(s)	The frequency for generating documents, in periods.

The Document date selection section

Element	Description
Start of the financial period	An option button that you click if you want the documents for a recognition transaction to be generated on the first day of the financial period.
End of period	An option button that you click if you want the documents for a recognition transaction to be generated on the last day of the financial period.
Fixed day in the period	An option button that you click if you want the documents for a recognition transaction to be generated on some particular day of the period. If you select this option, specify the particular day.