Deferred Expense
Deferred expense is a cost that has already been incurred, but which has not yet been consumed.
The cost is recorded as an asset until such time as the underlying goods or services are consumed; at that point, the cost is charged to expense. A Deferred Expense is initially recorded as an asset, so that it appears on the balance sheet (usually as a Current Asset, since it is not used as of now and will probably be consumed within one year).
1. Configuring Deferred Accounting
\u003e Introduced in Version 13
Before you start using deferred accounting you should be aware of the below settings which will give you more control over how you manage your deferred accounting
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Automatically Process Deferred Accounting Entry: This setting is enabled by default. In case you don't want the deferred accounting entries to be posted automatically, you can disable this setting. If this setting is disabled, deferred accounting will have to be processed manually using Process Deferred Accounting
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Book Deferred Entries Based On: Deferred expense amount can be booked based on two criteria. The default option here is \