Specifying Deferral Accounts for Amortization
For an item, a deferral account must be specified either on the item record or on the associated template record.
Deferral accounts can be specified in item records, amortization templates, and expense account records.
Only the following types of items support amortization:
■ Non-inventory Item for Purchase/Resale
■ Other Charge for Purchase/Resale
■ Service for Purchase/Resale
1.Specifying a Deferral Account on an Item Record
2.Specifying a Deferral Account on an Expense Account
This can be used for starting amortization through creation of a journal entry.
Now, when this expense account is used, amounts are deferred to the appropriate account.
