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ReportHello Everyone!
I've been mulling over how to amortize in NAV 2013 R2 for 2 weeks now. I've actually done a simulation on what I believe to be a good workaround on it so I am posting this for you guys to comment if it's good or not. Here goes!
My client is into leasing office space. We've agreed to have the lease rates in the Item card and have the billing coursed through the Sales Order and Sales Invoices. However, they collect advance rent and security deposit from their lessee.
- The security deposit is charged at three (3) months worth of rent. It is returned to the lessee at the end of the lease term.
- The advance rental is charged at three (3) months worth of rent as well. It is amortized at the start of the lease making the first three months or the rent "free".
- Vendor cards were set up for both the security deposit and advance rental for the lessee to keep them separate. The posting groups are mapped to the Security Deposit and Advance Rental (one Vendor Card, one Posting Group).
- Both the security deposit and advance rental were recorded in the Cash Receipts Journal by selecting the appropriate vendor and the appropriate balancing cash account.
- Upon return of the Security Deposit, the transaction is recorded in the Cash Payments Journal by selecting the vendor for the security deposit and the appropriate balancing cash account.
- The advance rental is "amortized" by recording it in the General Journal. The vendor for the advance rental is selected and the balancing account selected is Rent Income (G/L Account).
- Both the security deposit and advance rental were recorded in the Cash Receipts Journal by selecting the appropriate vendor and the appropriate balancing cash account.
All comments are very much welcome!
Thank you! :)
Marco
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