13 September 2010

Weekly Dynamic: Defer Accounts Payable Transactions

Previously I worked for a company that purchased content. We would buy video, like TV shows, and have the right to use them for a period of time. We would often have to pay up front and then need to spread the expense over say, a year. Well, not only is this easy to do in Dynamics GP, it can be done at the point of the AP invoice. This is great for things like insurance too.

In this example, we’ll use the Profit and Loss option in Deferral setup. This setting let’s the user enter ultimate expense account and then defer the transaction.

To make this happen in AP:

  1. Enter an AP transaction
  2. Click the distribution button
  3. Select the Expense line to defer
  4. Select Additional | Deferral from the menu at the top
  5. Set the End of Period date, Method and Deferral account
  6. Click Ok

image

Dynamics GP will adjust the transaction to move the expense to the deferral account and then it will create and post transactions to recognize the expense in the future. It doesn’t get much easier than that.