Business Central has built in capability to track deferred revenues and expenses, eliminating the need to evaluate deferrals by hand and automatically spreading the expenses/revenues across multiple periods. This is especially useful if you have an annual fee for something that you don’t want to recognize at the time you pay for the entire year. Business Central can simply spread the expense out over a specified time period by using the correct Deferral Code.

First select the account for the expense/revenue.

Next, setup or select the appropriate Deferral Code according to your deferral needs (equal per period, straight-line deferral, etc.) You can also specify the number of periods you would like to defer the amount and when you would like the deferral to begin.

Now once you assign the deferral template code to the line, you can review the breakdown of the deferral through different periods to confirm the deferral is as needed.

For any questions on this process or concerning any Dynamics 365 product, please reach out at Support@BondConsultingServices.com or schedule a free consultation with one of our experts here.