Amortization for Expenses and Items on a Purchase Custom Transaction
This topic describes how to use the amortization feature to defer and allocate expenses over multiple periods in a purchase custom transaction. For an overview of using expenses and items on purchase transactions, see Expenses and Items Subtab of a Purchase Custom Transaction.
The amortization feature enables you to record expenses independently from receiving bills and making payments, so you can defer expenses and spread their impact across multiple future time periods. For more information, see Expense Amortization.
To create an amortization schedule:
-
In the Amort. Schedule field, select a template such as Amortization Template, or select New and enter details. For more information, see Creating Amortization Templates.
-
In the Amort. Start and Amort. End fields, enter start and end dates for the amortization period.
-
Click Save.
-
A link appears in the Amortization Schedule Field. To open the Amortization Schedule page to see how the amounts will be amortized, click the link.
When you select an item and click the open icon, a page opens. The title of the page is based on the item or noninventory item you selected. On the page, there's a Revenue Recognition/Amortization subtab. Use the options on the Revenue Recognition/Amortization subtab to configure amortization. For more information, see Revenue and Expense Recognition Overview.
For information about other subtabs available for purchase custom transactions, see Creating a Purchase Custom Transaction Instance.