Processing Deferred Income

Some Of the nominals and ledgers used in this topic may be different to those in your chart of accounts.

Before posting any deferredincome, it is essential to check that all the accounting periods within the deferral time frame exist, and have a security role of PERIOD.8 or less.Deferredincome is not posted to the correct periods if this is not the case, and this can be time consuming to rectify. For information on how to check the access level, please see Opening/Closing Accounting Periods.

If you experience any problems with deferred income as a consequence of accounting periods being closed or having the wrong access level, please see Dealing with Deferred Income Posted to the Wrong Period.

Deferred income is typically recorded for nominal receipts, sales invoices, or sales credit notes.

  1. To post deferred income, complete the applicable document input form in the usual way. In the following example, a Nominal Receipt document is being completed. For more information, please see Completing Document Input Forms.

  2. Enter the start and end dates for the deferred income in Deferral Start Date and Deferral End Date. The dates entered must be in dd/mm/yyyy format, e.g. 01/09/2020.

  3. When you have entered the required details, press F5 to post the document. Once posted, the system automatically creates a DB - Deferred Income to Balance Sheet document, which transfers the balance from the applicable income nominal and account into the income nominal on the balance sheet. Using our earlier example, the £12,000 pupil funding top-up has been transferred.

  4. Based on the deferral start and end dates previously entered, the system calculates the number of accounting periods within the time frame, together with the amount that should be allocated to each accounting period. A DM - Deferred Income Movement to Income document is then posted for each applicable accounting period. Using our earlier example, 12 documents are created for each accounting period within the year for a value of £1000.