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Hi all
We have setup deferrals for revenue and expense. For the time being we want to use it for prepaid rents. when I go to purchasing> transaction> transaction entry> and make the invoice for the full amount for the year i.e 12,000. then I go to distribution tab and open the payable distribution window. At default their are two distributions assigned to vendor purchase and accounts payable.
I changed the first distribution and enter their deferral account. then hit the additional>deferral and entered the data that is okay. when I came to payable distribution window here I don't know what to do next. what distribution account need to be given in payables type. Because it does not make sense that I am debiting the 12,000 for whole 12 periods that is going to deferral and at the same time I am crediting the payable which is not basically payable right now. In the above scenario how to make payment entry and to credit cash as I paid to the landlord rent in advance. Below are the images of all steps from setup to making the entries.
Please help, with how to apply debit credit concepts in this specific scenario, in getting out of this
Below is the setup for deferrals
Below is the setup for Deferral profile for prepaid rent
Transactions Details
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And yes I fill in this data.
Hi Bell
Normally in accounting perspective when we make a prepayment we do make a following accounting entry that goes to balance sheet
Prepayment Dr.
Cash Cr.
When a period elapsed we send a portion expense from prepayments to expense account in profit and loss and make the following entry. Let assume above is prepaid rent
Rent Expense Dr.
Prepayment Cr.
Then same entry will be made in the following periods until prepayment in balance sheet become zero.
Now I come to revenue expense deferral module in dynamics gp.
I set up deferral profile well and now going to enter prepayment. What will be my first entry and which window in GP will be used to enter it. Obviously first entry should be payments to vendor. Then how to expense it out. How to use transaction entry window and war will be the nature of its distribution accounts. I would appreciate if you make a rent prepayment entry from start to end through deferrals.
Best Regards
Rashid Anwar
Just to be complete in the Deferral Profile page, it shows Period Information / Calculation Method and start date. Would you tell us - did you fill in this data?
Hope this works for you - not sure it matters - but lets try everything.
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