Understanding “Deferrals” in Business Central: Spread Out Revenues & Expenses Efficiently

Defer revenues and expenses to match them with the periods they truly belong! Instead of recognizing/recording revenue or expenses all at once, defer them over time using deferral templates in Business Central.

🔑 Why do we need to Defer?

Got paid upfront for a year-long service? Recognize the revenue monthly, not all at once.

Paid rent in advance? Spread it over the rental period.

Here’s how to get started:

1️. Go to Deferral Templates in your accounting system.

2️. Create a New Template and fill in the required fields.

3️. Choose a Calculation Method:

• Straight-Line: Splits the total amount evenly across the entire deferral period

• Equal per Period: It divides the total amount equally by the number of periods, no matter how long or short the period is.

• Days per Period: It calculates the amount based on the actual number of days in each period.

• User-Defined: You manually enter how much should be deferred for each period. You have full control over how the amounts are spread.

"Align your finances with reality—use deferrals to keep revenue and expenses in sync for accurate accounting!"

Defer revenues and expenses to match them with the periods they truly belong! Instead of recognizing/recording revenue or expenses all at once, defer them over time using deferral templates in Business Central.

🔑 Why do we need to Defer?

Got paid upfront for a year-long service? Recognize the revenue monthly, not all at once.

Paid rent in advance? Spread it over the rental period.

Here’s how to get started:

1️. Go to Deferral Templates in your accounting system.

2️. Create a New Template and fill in the required fields.

3️. Choose a Calculation Method:

• Straight-Line: Splits the total amount evenly across the entire deferral period

• Equal per Period: It divides the total amount equally by the number of periods, no matter how long or short the period is.

• Days per Period: It calculates the amount based on the actual number of days in each period.

• User-Defined: You manually enter how much should be deferred for each period. You have full control over how the amounts are spread.

"Align your finances with reality—use deferrals to keep revenue and expenses in sync for smarter, smoother accounting!"