Process Deferred Accounting in ERPNext
Process Deferred Accounting is a log entry created every time deferred revenue or deferred expense is processed in ERPNext.
It ensures systematic recognition of deferred income and expenses by generating accounting entries over time.
Overview
Process Deferred Accounting records are created automatically when deferred revenue or expense is booked through background jobs. However, users can also create them manually when required.
1. Prerequisites
Before using Process Deferred Accounting, ensure you understand the following:
2. How to Create Process Deferred Accounting
- Go to Process Deferred Accounting list and click New.
- Enter the Company.
- Select Process Type:
- Income – for Deferred Revenue
- Expense – for Deferred Expense
- Set Posting Date range.
- Enter Service Start Date and Service End Date.
- Save and Submit.
3. Key Features
3.1 On Submission
- ERPNext automatically generates General Ledger (GL) entries
- Entries are created for all invoices within the selected service period
- Revenue or expense is recognized gradually over time
Users can also specify a particular Deferred Revenue or Expense account if required for targeted processing.
3.2 Automatic Deferred Accounting
Deferred accounting can be automated by enabling the following setting:
- Automatically Process Deferred Accounting Entry in Accounts Settings
To access this setting:
Home → Accounting → Accounting Masters → Accounts Settings
Result
- Automated recognition of deferred income and expenses
- Accurate period-wise financial reporting
- Reduced manual accounting effort
Process Deferred Accounting ensures smooth and controlled posting of deferred entries in ERPNext.
