Deferral Plans in Payment Reconciliation Journals

In 365 business Banking, you defer debits directly in the payment reconciliation journal with a deferral code.

Business Value

Certain expenses, such as insurance premiums, rent or license fees, span multiple accounting periods but are settled with a single payment. Correct month-end closing requires the expense to be allocated to the periods it belongs to. If there is no purchase invoice for such a payment, you defer the expense with 365 business Banking directly in the payment reconciliation journal, without a separate manual posting.

Feature Description

365 business Banking adds the Deferral Code field and the Deferral Schedule action to the lines of the payment reconciliation journal. If a deferral code is entered, Business Central distributes the expense of the line across the periods according to the deferral template when the line is posted. This requires a debit with the Account Type G/L Account or Vendor that is not applied to an entry. You enter the deferral code manually per line. Reconciliation rules do not set it.

For more information on deferrals in the payment reconciliation journal, see the article Deferrals in the payment reconciliation journal.