Set up the recognition process /visma-net-erp/help/deferred-revenue/set-up-the-recognition-process section 2026-02-19T17:09:06+01:00 # Set up the recognition process Click the links below to learn more about a topic you are interested in. Use the breadcrumb links in the upper left corner to see your location, navigate backwards or go to the starting point. Set up the recognition process - overview /visma-net-erp/help/deferred-revenue/set-up-the-recognition-process/set-up-the-recognition-process-overview page To set up the process of the revenue or expense recognition in Visma Net, you first need to configure the required deferral codes in the Deferred revenue workspace in the Deferral codes (DR202000) window. 2026-02-19T17:09:06+01:00 # Set up the recognition process - overview To set up the process of the revenue or expense recognition in Visma Net, you first need to configure the required deferral codes in the Deferred revenue workspace in the Deferral codes (DR202000) window. For more information: [Deferral codes (DR202000)](/visma-net-erp/help/deferred-revenue/deferred-revenue-windows/deferral-codes-dr202000/). + For each deferral code, define such settings as the recognition method to be applied, general ledger accounts to be used, and schedule settings. + Assign a deferral code to the applicable items, or add the code to the required line of a document that requires deferrals. + On release of documents with deferral codes specified, the system generates recognition transactions in accordance with the schedules defined by the deferral codes. + To make the system release and post recognition transactions that come due, run the recognition process in the [Run recognition (DR501000)](/visma-net-erp/help/deferred-revenue/deferred-revenue-windows/run-recognition-dr501000/) window, so that the transactions are posted in each specified period and a portion of the revenue or expenses is recognised. About deferral code setup /visma-net-erp/help/deferred-revenue/set-up-the-recognition-process/about-deferral-code-setup page You use deferral codes for recognition of revenues and expenses over multiple financial periods. 2026-02-19T17:09:06+01:00 # About deferral code setup You use deferral codes for recognition of revenues and expenses over multiple financial periods. ## Introduction The system will then use them to create deferral transactions on release of documents (such as invoices) in which these deferral codes are specified. ## Configuring deferral codes You configure a deferral code by using the [Deferral codes (DR202000)](/visma-net-erp/help/deferred-revenue/deferred-revenue-windows/deferral-codes-dr202000/) window. For each code, you specify the following settings: Recognition method : The method that defines how an amount will be distributed over the specified financial periods. Code type : The type of the code, which indicates whether it will be used for expense or revenue deferrals. Deferral account : The general ledger account to hold the deferred revenue (liability account) or expense (asset account) amount. Deferral sub. : The subaccount (if applicable in your system), for proper tracking of deferral transactions. Recognise now % : The percentage of the document amount (or line amount) that can be recognised immediately. Schedule settings : , **Every x periods**: The frequency of generating the recognition transactions. Document date selection : ( **Start of the financial period**, **End of period**, **Fixed day in the period** ): The exact day when the documents for a recognition transaction will be generated. Once you have specified all required settings based on the selected recognition method, the code will be available in the list of deferral codes that can be assigned to documents and used by the system for generating recognition schedules. If you do not assign a deferral code to an item, you can still add a deferral code to the required line of a document on the **Document details** tab when you enter a document into the system. The list of available deferral codes that you have created in Visma Net are available on the **Deferral settings** tab of the [Stock items (IN202500)](/visma-net-erp/help/inventory/inventory-windows/stock-items-in202500/) window. About recognition methods for deferred revenues or expenses /visma-net-erp/help/deferred-revenue/set-up-the-recognition-process/about-recognition-methods-for-deferred-revenues-or-expenses page Recognition methods determine how the deferred revenue or expense amount of a particular document will be distributed over the defined number of periods. 2026-02-19T17:09:06+01:00 # About recognition methods for deferred revenues or expenses Recognition methods determine how the deferred revenue or expense amount of a particular document will be distributed over the defined number of periods. ## Introduction Recognition methods determine how the deferred revenue or expense amount of a particular document will be distributed over the defined number of periods. You specify a particular recognition method in the settings of each deferral code in the [Deferral codes (DR202000)](/visma-net-erp/help/deferred-revenue/deferred-revenue-windows/deferral-codes-dr202000/) window. You can assign a deferral code to a line of an invoice. ## Evenly by periods With the **Evenly by periods** recognition method, the amount to be recognised is distributed evenly to all included periods. The number of recognition periods is defined by the value you specify in the **Occurrences** field for the deferral code in the [Deferral codes (DR202000)](/visma-net-erp/help/deferred-revenue/deferred-revenue-windows/deferral-codes-dr202000/) window. An occurrence is a recognition event for which a recognition transaction is generated. The frequency of recognition events depends on the number (of financial periods) that you select in the **Every X periods** field. (For example, a **2** in this field would mean that a recognition event occurs every 2 financial periods.) Thus, when you select the **Evenly by periods** recognition method, you also need to define the number of recognition occurrences for the document amount and their frequency. The number of occurrences does not include immediate recognition of the revenue or expenses, which is based on the percentage specified in the **Recognise now (%)** field. ### Example Suppose there is an invoice dated January 11, 2021, that contains one line with an amount of €1500. The sales revenue should be recognised over six months in equal recognition amounts. (In this example, periods are defined as months in the system.) You apply a deferral code that has the following settings in the [Deferral codes (DR202000)](/visma-net-erp/help/deferred-revenue/deferred-revenue-windows/deferral-codes-dr202000/) window: Recognition method : **Evenly by periods** Occurrences : **6** Schedule settings : **Every 1 period(s)** With this recognition method, the document amount (€1500) is divided evenly among six periods: January, February, March, April, May, and June; each portion is equal to €250. In this example, the recognition period is equal to the financial period because we set the recognition schedule to **Every 1 period(s)**. If we had set it to **Every 2 period(s)**, the recognition period would be equal to two financial periods, which means that the recognition process would be performed once every two months. ## Evenly by periods, prorate by days With the **Evenly by periods, prorate by days** method, the amount to be recognised is distributed evenly among recognition periods (the number of which is defined by the value specified in the **Occurrences** field in the [Deferral codes (DR202000)](/visma-net-erp/help/deferred-revenue/deferred-revenue-windows/deferral-codes-dr202000/) window). The first and last periods are counted together as one recognition period and the amount to be recognised for each is proportional to the number of days in each period. Again, an occurrence is a recognition event. The frequency of occurrences depends on the number (of financial periods) you select in the **Every X period(s)** field. 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. ### Example Suppose there is an invoice, dated 1.11.2021, that contains one line with an amount of €1500. The sales revenue should be recognised over six months. (In this example, periods are defined as months in the system.) You apply a deferral code that has the following settings in the [Deferral codes (DR202000)](/visma-net-erp/help/deferred-revenue/deferred-revenue-windows/deferral-codes-dr202000/) window: + Recognition method: **Evenly by periods, prorate by days** + **Occurrences**: **6** + **Schedule settings**: **Every 1 period(s)** With this recognition method, the document amount is divided evenly among five full periods, with each portion equal to €300. Four of these periods are February, March, April, and May. The fifth €300 portion is divided into two parts, each of which is proportional to the number of days included in the recognition time interval in January (20 days, so €193.55) and in June (11 days, so €106.45). The amounts are rounded according to the base currency precision, which is set to 2. ## Evenly by days in period With the **Evenly by days in period** method, the amount to be recognised is distributed by periods with a proportional division by the number of calendar days in each period. The number of recognition periods is defined by the value specified in the **Occurrences** field in the deferral code settings in the [Deferral codes (DR202000)](/visma-net-erp/help/deferred-revenue/deferred-revenue-windows/deferral-codes-dr202000/) window. As mentioned, an occurrence is a recurring recognition event for which a recognition transaction is generated. The frequency of occurrences depends on the number (of financial periods) you select in the **Every X period(s)** field. ### Example Suppose there is an invoice, dated 1.1.2021 that contains one line with an amount of €1500. The sales revenue should be recognised over six months. (In this example, periods are defined as months in the system.) You apply a deferral code that has the following settings in the [Deferral codes (DR202000)](/visma-net-erp/help/deferred-revenue/deferred-revenue-windows/deferral-codes-dr202000/) window: + Recognition method: **Evenly by days in period** + **Occurrences**: **6** + Schedule settings: **Every 1 period(s)** With this recognition method, the amount for each recognition period is computed based on the number of calendar days in each period: + January (31 days): The amount to be recognised is €256.91. + February (28 days): The amount to be recognised is €232.04. + March (31 days): The amount to be recognised is also €256.91. + April (30 days): The amount to be recognised is €248.62. + May (31 days): The amount to be recognised is €256.91. + June (30 days): The amount to be recognised is €248.61. ## Flexible by periods, prorate by days With the **Flexible by periods, prorate by days** method, the amount to be recognised is distributed evenly among periods, with a proportional division by days among the first and last periods. The first and the last periods may be less than a full period, depending on the start recognition date and the final recognition date specified in a particular document (such as purchase invoice). The number of recognition periods is defined by the recognition dates specified in a document. ### Example Suppose there is an invoice that contains one line with an amount of €1500. In this invoice, the start date of the recognition process (in the **Term start date** field in the [Sales invoices (AR301000)](/visma-net-erp/help/customer-ledger/customer-ledger-windows/sales-invoices-ar301000/) window) is set to 15.2.2021, and the final date of the recognition process (in the **Term end date** field) is set to 21.6.2021. Thus, the document amount should be recognised within the date range defined by the term start date and the term end date. A deferral code with the following settings in the [Deferral codes (DR202000)](/visma-net-erp/help/deferred-revenue/deferred-revenue-windows/deferral-codes-dr202000/) window is applied to this invoice: Recognition method : **Flexible by periods, prorate by days** Schedule settings : **Every 1 period(s)** With this recognition method, the document amount is distributed over the date range that starts on the 15.2. ( term start date ) and ends on the 21.6. ( Term end date ). The date range covers 14 days of February, three full periods (March, April and May), and 21 days of June. The 14 days of February is 0.5 period (14 days / 28 days = 0.5). The 21 days of June is 0.7 period (21 days / 30 days = 0.7). Thus, February and June together makes 1.2 periods. So that, the revenue amount should be distributed across 4.2 periods, which is 3 periods of March, April and May + 1.2 periods of February and June. The amount recognised in each of the three full periods (March, April, and May) is €1500 / 4.2 = €357.14. The amount recognised in February is 0.5 \* €357.14 = €178.57, and the amount recognised in June is 0.7 \* €357.14 = €250.01. ## Flexible by days in period With the **Flexible by days in period** method, the amount to be recognised is distributed among periods, according to the number of calendar days in each particular period. The start date and the final date of the recognition process is specified individually for each line of a particular supplier ledger document (such as purchase invoice or cash sale). ### Example Suppose there is an invoice that contains one line with an amount of €1500. In this invoice, the start date of the recognition process (in the **Term start date** field in the [Sales invoices (AR301000)](/visma-net-erp/help/customer-ledger/customer-ledger-windows/sales-invoices-ar301000/) window) is set to 15.2.2021, and the final date of the recognition process (in the **Term end date** field) is set to 21.6.2021. Thus, the document amount should be recognised within the specified date range, which is equal to 127 days (the number of days between the term start date and the term end date. A deferral code that has the following settings in the [Deferral codes (DR202000)](/visma-net-erp/help/deferred-revenue/deferred-revenue-windows/deferral-codes-dr202000/) window is applied to the invoice: + **Recognition method**: **Flexible by days in period** + Schedule settings: **Every 1 period(s)** With this recognition method, the document amount is spread over the 127 days, with a proportional division by days. Thus, the document amounts are allocated as follows: + February (14 days): The amount is €165.35. + March (31 days): The amount is €366.14. + April (30 days): The amount is €354.33. + May (31 days): The amount is €366.14. + June (21 days): The amount is €248.04. ## 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 period, 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, then the **Revenue** option is selected by default in the **Code type** field and is not available for editing.

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 Run recognition /visma-net-erp/help/deferred-revenue/set-up-the-recognition-process/run-recognition page 2026-02-19T17:09:06+01:00 # Run recognition 1. Go to the [Run recognition (DR501000)](/visma-net-erp/help/deferred-revenue/deferred-revenue-windows/run-recognition-dr501000/) window. 1. In the **Recognition date** field, enter a date to select the recognition transactions in the deferral schedules that are due. 1. In the **Deferral code** field, you can select a code if you want to select only deferral schedules associated with this specific code. You can leave the field blank to view schedules for all codes. 1. To run recognition for specific schedules, select the check box in front of the schedules you want to include in the run. 1. Click **Process**. To run recognition for all schedules displayed in the table, you do not have to select them, just click **Process all**.

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