Tag: amortization

Amortization Template 101: Permissions and Types

In the previous article, we covered Deferral Accounts and their significance in relation to the Amortization feature.  Now, let’s take the next step by discussing Amortization Templates. An Amortization Template defines the terms of the amortization schedule created by the purchase of an item.  Once the Amortization feature is enabled, you can create multiple templates to define the… Continue reading Amortization Template 101: Permissions and Types

Amortization – Steps Consolidated

Amortization – Steps  A deferral account (deferred expense account) should be specified on the Expense account record.  An amortization template should be created and a deferral account should be selected on the amortization template.   Vendor bills and Vendor credits are the transactions that support Amortization.  Upon creation of the transaction, the amortization template will be… Continue reading Amortization – Steps Consolidated

Amortization Supported Transactions

Amortization is supported for the following types of transactions:   ■ Vendor Bill – Item lines on a bill can use the default amortization templates from item records, or you can select templates on the bill transaction.    ■ Vendor Credit – Item lines on a credit can use the default amortization templates from item records or… Continue reading Amortization Supported Transactions

Amortization Template

Amortization Template  After the Amortization feature has been enabled, you can create multiple templates to define expense deferral terms. These templates are used to generate amortization schedules that determine how costs from associated items and expenses should be posted.    After templates have been created, you can associate them with items and expenses.   ■ You… Continue reading Amortization Template

Specifying Deferral Accounts for Amortization

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… Continue reading Specifying Deferral Accounts for Amortization

Configuring Amortization Preferences

Once the Amortization feature has been activated, it becomes necessary to define your amortization preferences. This process can be accomplished as follows: Navigate to the ‘Setup’ menu and select ‘Accounting’ followed by ‘Accounting Preferences.’ Proceed to the ‘General’ subtab. Customize the following preferences to align with your requirements:In the ‘Revenue Recognition’ section: “Use System Percentage… Continue reading Configuring Amortization Preferences