I’m sure you already needed it feature and it is possible you already made it as customization in older NAV version (as my company for example). By my opinion it is maybe small, but really necessary feature.
But now we can say, Microsoft is listening us. People from Microsoft really listened us and really made a good job. One of them is using deferrals as new financial feature.
With this new feature, NAV 2016 automatically defers revenues and expenses over a predefined schedule. Finally, we can recognize revenues and expenses in different periods compared with transaction posting period.
It is really easy to use. First we have to set up deferral templates with deferral account, number of period, calculation method, date…
Then, you can configure Default Deferrals Template on G/L Account, Item or Resource (not for Item Charge). In this situation you will use it by default in Purchase Order for example. But if you use e.g. G/L Account without Default Deferrals Template, you can add it on purchase line. You can always see Deferral Schedule from document and change something if you need it.
When you post document, the amount will be posted to the deferral account, and recognized over the defined schedule.
This is very short showing about this awesome feature, but run NAV 2016 and try it. You will see, it is easy and simple for working. Good job Microsoft.
15 thoughts on “How Deferrals Works in NAV 2016?”
Thanks for your share. A question – I think that Recurring Journal has the same result. Am I right?
If you think on Allocations in Rec.Journal, it is not the same. You can use Rec.Journals to allocate your already posted entries to other dimensions…
But using deferrals, you can allocate posting of expenses and revenues on different dates in original documents.
Thanks for your answer,.
Yes, I actually thought this feature as allocation :D. I think I’ll have to try it on NAV 2016 to see how it works.
It is easy for use. Try and you will see results. Small feature, but very useful.
Is the deferral functionality working also across different accounting periods (like posting deferrals also for next year)?
The deferral cannot works outside the accounting periods that have been configured, but you have combine different accounting periods (if you already opened them).
Hello even after had open like 2 period i mean years i still get this error “deferred schedule fall outside account period ” Any Help
Thanks for sharing and i found it’s interesting.
How were you able to make it as customization in older NAV version (like you did in your own Company)
Does this demand a whole lot of programming?
Can you try to descripe how it worked? I am trying to find a better solution than all these spreadsheets for my Company.
i am looking for solution similar to the Deferring Revenues and Expenses
Thank you very much in advance for your answer!
It worked similar as deferrals. But this is not small customization.
Deferrals does not seem to allow discounts. So if you are going to make deferrals on invoices and want to add discount, it does not seem to cater for it.
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I have created Accounting period from 1.4.2017 to 31.3.2019, still i am getting following error while trying to post GL with deferral templates:
“The deferral schedule falls outside the accounting periods that have been set up for the company”
Kindly suggest how to sort out the above error.
Thanks for sharing thhis