Accounts Payable > Deferred Expense

Companies have the option to pay expenses forward for certain costs associated with doing business such as rent, property taxes, insurance premiums and interest expenses. These advance payment for goods or services must then be recorded as such in the system until the benefit of the purchase is fully realized.

The Deferred Expense feature provides users the flexibility to record expenses incurred from contracts that are amortized over time. This feature allows users to perform the following:

•Set Up AP Invoice amounts for expense deferral

•Set up schedule for expense amortization

•Post amortized expenses

•Void amortized expenses

•Generate expense amortization reports

Note: The Deferred Expense functions are available only when the Expense Amortization feature is activated in the AP Module Setup function.