Amortization – Steps Consolidated

Amortization – Steps 

1. A deferral account (deferred expense account) should be specified on the Expense account record. 
2. An amortization template should be created and a deferral account should be selected on the amortization template.  
3. Vendor bills and Vendor credits are the transactions that support Amortization. 
4. Upon creation of the transaction, the amortization template will be auto-populated on the item line either from the item record or can be entered on the item line. 
5. After the creation of a transaction (bill), the amount will be posted to the deferred expense account and an Amortization schedule will be created. 
6. Create Amortization JE’s at the end of each period to amortize the expenses.