User wants to create deferral for previous months. Currently we have an option to override dates and process deferral for previous months.
But this is too much of manual work as customer has more than 500 invoices per month. They would like to have parameter to create deferral for previous months under "revenue and expense deferral parameter".
For now we have an option under deferral start date as beginning of the current month and beginning of the next month. If we can have some parameter like this to create deferral for previous months it would be great.
Comments
A lot of companies, customers of Business Central are using the deferral function. The deferral function is immediately linked to Revenue (and expense) recogntion. Each company is closing their financials, monthly, quarterly or yearly. It happens that certain contracts, subscriptions need to be posted (expense or revenue), while the period is closed but the starting date of the subscription is before the closing date. But you can, may not change the financial results for closed periods.Example: Fiscal Year End - 31/12/23, and the period is closed for Jan '24.Customer needs to be invoiced in February 24 for a subscription starting 1/10/23 to 30/9/24, for 12.000 Euro (1.000 Euro per month).Accounting wise, we need to recognize revenue in February 24 - 4 months * 1.000 Euro = 4.000 Euro, and 8.000 Euro is deferred. Starting date 1/10/23, of the subscription Posting date 15/2/24, and 4 months needs recognized as revenue, 8 months need to be deferred.Current standard, wants to recognize revenue at the starting date - 1/10/23 - but the period is closed.
Category: Subscription Billing