Tracking, posting and balancing deferring entries or monthly accruals can be a labor intensive process that many accountants don’t look forward to. For organizations that have to manage a large number of expenses and annual charges this can become a burden. Fortunately, with the release of Altus Dynamics NAV 2016, entering, reviewing, posting and reconciling deferral entries has never been easier.
Users also have the ability to automate the process of posting deferral or accrual entries with deferral templates. These templates provide users with the option to specify the deferral account, a calculation method and a posting start date. These templates can then be used on Purchase Documents, Sales Documents, and the General Journal.
What happens if the Accounting Department receives an invoice for an annual expense?
The Accounts Payable person will go to Purchase Invoice in NAV to enter the invoice. When the expense account on the line is selected and the cost is entered, the next step will be to select an applicable deferral code. The user can then check the deferral schedule and make changes to the amount distributed as generated by the system. From there the document is ready to post.
So what do you do if you feel uncomfortable with the result of the transaction?
One of the features that is included in Altus Dynamics NAV 2016 is the ability to preview a posting of a document before its actual posting. In a single step, users select Preview Posting from the ribbon of the respective document.
Why is deferral functionality so great?
- Flexible configuration - accounting users can setup as many deferral templates as needed.
- Easy to use - users simply select the deferral template on an entry and the system will automatically post all future transactions.
- Automatic distribution of amounts - Can be used for any transaction that requires distribution of amounts over a certain period of time, usually deferrals or monthly accruals.
- Elimination of manual entries – Spreadsheets are no longer needed as the process is automated.
- Reduced room for errors – An automated process will ensure that there is no human error from manual tracking and data entry of deferral or accrual entries.
- Easy reconciliation – The deferral reports in NAV will make this simple
If you’re interested in learning more about the new Altus Dynamics NAV 2016 and its updates to the way organizations process deferrals, listen to our recorded webcast, where our industry experts will walk you through the Top 6 Sizzling New Features For Finance.