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Re: Deferrals

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I have posted Sales Invoice on 25-07-2025, with deferral schedule of 12 months and posting date was January 1, 2025. When I fetch the Sales Deferral summary report it shows amount recognized as until this month value. But, when I check General Ledger entries, only I can able to see recognition entry for January only. Why ?

Can anyone guide me on this ..

Deferral Summary report:

Ledger Entries:

G/L Acc No	G/L Name	Amount
41000	Base Rent	-10.19
41000	Base Rent	120.00
41000	Base Rent	-120.00
21202	Input Tax	-6.00
21104	Unearned Rental Income	10.19
21104	Unearned Rental Income	-120.00
11810	Trade Receivables	126.00

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Dynamics 365 Business Central

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Sumit Singh 10,079 on at

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📊 Why the Deferral Summary Report Shows Recognition Until July 2025
The Sales Deferral Summary report is designed to show cumulative recognition based on the deferral schedule. Since your invoice was posted with a deferral start date of January 1, 2025 and spans 12 months, the system calculates and displays the total amount recognized up to the current date (July 25, 2025). That’s why it shows ₹69.69 recognized and ₹50.31 remaining deferred.
📘 Why the General Ledger Shows Only January's Entry
The General Ledger (G/L) only reflects actual posted entries. Recognition entries for deferrals are typically posted monthly via a batch job or recurring journal, not automatically for future months. So if only January's recognition entry is visible, it likely means:

The monthly deferral recognition process (e.g., via the "Process Deferral Transactions" batch job) has not been run for February through July.

The system has calculated the recognition amounts (as seen in the report), but hasn't posted them to the G/L yet.

Note: This response was created in collaboration with Microsoft Copilot to ensure clarity and completeness. I hope it helps to some extent.
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Sohail Ahmed 11,136 Super User 2025 Season 2 on at

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The report shows amounts scheduled up to this month, but the G/L only reflects what’s been posted likely just January. Did you run the Post Deferred Revenue batch job after posting the invoice? That’s needed to generate the recognition entries for the remaining months.

Helpful links:

https://learn.microsoft.com/en-us/dynamics365/business-central/finance-how-defer-revenue-expenses

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RockwithNav 8,600 Super User 2025 Season 2 on at

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When you will do a preview posting, it will show you all 12 month entries but once you will post it, it will just show you for that month and that's how deferral works. If you wish to see all the entries after posting then remove the date filter from find entries and it will bring all entries for you.

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Jainam M. Kothari 15,631 Super User 2025 Season 2 on at

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Hello,

The reason you're seeing only January's recognition entry in the General Ledger despite the Sales Deferral Summary showing amounts up to July is because Business Central posts only the initial deferral entry when the invoice is posted.

The remaining scheduled entries (February to July) are not automatically posted and require manual action via the Deferral Posting process in the General Journal. Once this process is run, the scheduled recognition entries will appear in the General Ledge

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Mansi Soni 8,907 Super User 2025 Season 2 on at

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Hello,

Adding more details:

https://learn.microsoft.com/en-us/dynamics365/business-central/finance-how-defer-revenue-expenses
https://learn.microsoft.com/en-us/dynamics365/business-central/reports/report-1701

Regards,
Mansi Soni

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YUN ZHU 95,331 Super User 2025 Season 2 on at

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Hi, It seems that there is a problem with the Deferral Template settings, or the item is not successfully associated with the Deferral Template. Please check the settings below first.

In addition, you can confirm whether it is successful before posting.

More details: Business Central 2022 wave 1 (BC20) new features: More control over deferrals posting (Beginning of Next Calendar Year as the Start Date)

https://yzhums.com/24008/

Hope this helps.

Thanks.

ZHU

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Jeffrey Bulanadi 8,760 on at

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Hi,

It’s a subtle but important distinction between what the Deferral Summary report shows and what’s actually posted to the General Ledger.

In BC, when you post a sales invoice with a deferral schedule, the system creates all deferral entries immediately — but only the first period’s recognition entry is posted to the G/L at the time of invoice posting. The remaining entries are scheduled but not yet posted. That’s why your Deferral Summary shows recognized amounts through July, but your G/L only shows January’s entry.

To post the remaining recognition entries, you’ll need to run the Process Deferral Transactions batch job. This job moves the scheduled amounts from the deferral account to the revenue account for each period. Until that process is run, the G/L will only reflect the initial recognition.

Helpful References:
Defer revenues and expenses – Microsoft Learn
How to set up and use Deferral in BC – Dynamics Community
Create Deferrals from Sales and Purchases – Usedynamics

If you find this helpful, feel free to mark this as the suggested or verified answer.

Cheers
Jeffrey

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DAnny3211 11,397 on at

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Hello,

Based on the scenario described, it appears that a Sales Invoice was posted on July 25, 2025, with a deferral schedule starting from January 1, 2025, and spanning 12 months. While the Sales Deferral Summary report correctly shows the recognized amounts up to the current month, the General Ledger Entries only reflect recognition for January.

Explanation:

This behavior is expected when the deferral schedule is created with a start date in the past relative to the invoice posting date. Business Central will only post the first recognition entry (in this case, January) at the time of invoice posting. The remaining deferral entries are scheduled but not yet posted.

Suggested Actions:

Run the Deferral Posting Routine
To post the remaining deferral entries, you need to run the "Post Deferrals" batch job. This can be found under:

Departments > Financial Management > Periodic Activities > Post Deferrals

Ensure the "Posting Date" in the batch job is set to the current or desired recognition period.

Review Deferral Template Settings
Confirm that the deferral template used is configured to recognize revenue monthly and that the deferral start date aligns with the intended recognition schedule.

Verify User Permissions and Posting Setup
Ensure the user running the batch job has the necessary permissions and that the posting setup allows for recognition across periods.

Automate Deferral Posting (Optional)
If this is a recurring process, consider scheduling the Post Deferrals job to run periodically (e.g., monthly) to ensure recognition entries are posted consistently.

Please verify if this resolves the issue. If so, kindly mark this response as accepted so it may assist other users encountering the same situation.

Best regards.

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