AP Bill Amortization

Hi @byates 

You can use out of the box functionality ‘Deferred expense’ feature to handle this scenario. 

Here is how it works.

• Lets take Insurance as example, paid for full year on 1st Jan
• Expense need to be spread across 12 periods (equal installment in this case)
• Create a Deferral schedule for Insurance expense 
• Note I have setup an asset account ‘Prepaid insurance’ on the schedule
• Create an AP bill for Insurance expense. Select deferral schedule code on detail line
• On release of AP bill, it debits Prepaid Insurance asset account instead of Expense account linked to the non stock item I have selected for Insurance on AP bill 

Note the amount is debited to ‘Prepaid insurance’ account linked to the deferral schedule and not above Insurance expense account

Click on ‘view deferrals’, it opens the schedule and reflects the date and amount that would be moved to ‘insurance expense’ account.

Run recognition for each period

Here is the document linked GL batch generated to recognize the expense for first period

Hope this helps,

Regards,

Thanks for the input @vkumar. I am being told by our implantation partners that the Deferred Revenue Module is a add on and not part of the out of box solution. I thought that was crazy talk as there isn't a business that would not need this basic functionality of amortizing a deferred expense.  However, after reviewing you post, I do not have anything in my system that comes up for deferrals. So, as always, they appear correct. I am still shocked by this however.