diff --git a/content/applications/finance/accounting/customer_invoices/deferred_revenues.rst b/content/applications/finance/accounting/customer_invoices/deferred_revenues.rst index d491fdb68..fae98fa10 100644 --- a/content/applications/finance/accounting/customer_invoices/deferred_revenues.rst +++ b/content/applications/finance/accounting/customer_invoices/deferred_revenues.rst @@ -2,194 +2,175 @@ Deferred revenues ================= -**Deferred revenues**, or **unearned revenue**, are payments made in advance by customers for -products yet to deliver or services yet to render. +**Deferred revenues**, or **unearned revenues**, are invoices addressed to customers +for goods yet to be delivered or services yet to be rendered. -Such payments are a **liability** for the company that receives them since it still owes its -customers these products or services. The company cannot report them on the current **Profit and -Loss statement**, or *Income Statement*, since the payments will be effectively earned in the future. +The company cannot report them on the current **profit and loss statement**, or *income statement*, +since the goods and services will be effectively delivered/rendered in the future. -These future revenues must be deferred on the company's balance sheet until the moment in time they -can be **recognized**, at once or over a defined period, on the Profit and Loss statement. +These future revenues must be deferred on the company's balance sheet among the current liabilities +until they can be **recognized**, at once or over a defined period, on the profit and loss +statement. -For example, let's say we sell a five-year extended warranty for $ 350. We already receive the money -now but haven't earned it yet. Therefore, we post this new income in a deferred revenue account and -decide to recognize it on a yearly basis. Each year, for the next 5 years, $ 70 will be recognized -as revenue. +For example, let's say a business sells a software license of $1200 for 1 year. They immediately +invoice it to the customer but can't consider it earned yet, as the future months of licensing have +not yet been delivered. Therefore, they post this new revenue in a deferred revenue account and +recognize it on a monthly basis. Each month, for the next 12 months, $100 will be recognized as +revenue. -Odoo Accounting handles deferred revenues by spreading them in multiple entries that are -automatically created in *draft mode* and then posted periodically. +Odoo Accounting handles deferred revenues by spreading them in multiple entries that are posted +periodically. .. note:: The server checks once a day if an entry must be posted. It might then take up to 24 hours before - you see a change from *draft* to *posted*. + you see a change from :guilabel:`Draft` to :guilabel:`Posted`. -Prerequisites +Configuration ============= -Such transactions must be posted on a **Deferred Revenue Account** rather than on the default income -account. +Make sure the default settings are correctly configured for your business. To do so, go to +:menuselection:`Accounting --> Configuration --> Settings`. The following options are available: -Configure a Deferred Revenue Account ------------------------------------- +Journal + The deferral entries are posted in this journal. +Deferred Expense Account + Expenses are deferred on this Current Asset account until they are recognized. +Deferred Revenue Account + Revenues are deferred on this Current Liability account until they are recognized. +Generate Entries + By default, Odoo :ref:`automatically generates ` + the deferral entries when you post a customer invoice. However, you can also choose to + :ref:`generate them manually ` by selecting the + :guilabel:`Manually & Grouped` option instead. +Amount Computation + Suppose an invoice of $1200 must be deferred over 12 months. The :guilabel:`Equal per month` + computation accounts for $100 each month, while the :guilabel:`Based on days` computation + accounts for different amounts depending on the number of days in each month. -To configure your account in the **Chart of Accounts**, go to :menuselection:`Accounting --> -Configuration --> Chart of Accounts`, click on *Create*, and fill out the form. +.. _customer_invoices/deferred/generate_on_validation: -.. image:: deferred_revenues/deferred_revenues01.png - :align: center - :alt: Configuration of a Deferred Revenue Account in Odoo Accounting +Generate deferral entries on validation +======================================= + +.. tip:: + Make sure the :guilabel:`Start Date` and :guilabel:`End Date` fields are visible in the + :guilabel:`Invoice Lines` tab. In most cases, the :guilabel:`Start Date` should be in the same + month as the :guilabel:`Invoice Date`. + +For each line of the invoice that should be deferred, specify the start and end dates of the +deferral period. + +If the :guilabel:`Generate Entries` field in the **Settings** is set to :guilabel:`On invoice/bill +validation`, Odoo automatically generates the deferral entries when the invoice is validated. Click +the :guilabel:`Deferred Entries` smart button to see them. + +One entry, dated on the same day as the invoice, moves the invoice amounts from the income account +to the deferred account. The other entries are deferral entries which, month after month, move +the invoice amounts from the deferred account to the income account to recognize the revenue. + +.. example:: + You can defer a January invoice of $1200 over 12 months by specifying a start date of 01/01/2023 + and an end date of 12/31/2023. At the end of August, $800 is recognized as an income, + whereas $400 remains on the deferred account. + +Reporting +========= + +The deferred revenue report computes an overview of the necessary deferral entries for each account. +To access it, go to :menuselection:`Accounting --> Reporting --> Deferred Revenue`. + +To view the journal items of each account, click on the account name and then :guilabel:`Journal +Items`. + +.. image:: deferred_revenues/deferred_revenue_report.png + :alt: Deferred revenue report .. note:: - This account's type must be either *Current Liabilities* or *Non-current Liabilities* + Only invoices whose accounting date is before the end of the period of the report + are taken into account. -Post an income to the right account ------------------------------------ +.. _customer_invoices/deferred/generate_manually: -Select the account on a draft invoice -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ +Generate grouped deferral entries manually +========================================== -On a draft invoice, select the right account for all the products of which the incomes must be -deferred. +If you have a lot of deferred revenues and wish to reduce the number of journal entries created, you +can generate deferral entries manually. To do so, set the :guilabel:`Generate Entries` field in the +**Settings** to :guilabel:`Manually & Grouped`. Odoo then aggregates the deferred amounts in a +single entry. -.. image:: deferred_revenues/deferred_revenues02.png - :align: center - :alt: Selection of a Deferred Revenue Account on a draft invoice in Odoo Accounting +At the end of each month, go to :menuselection:`Accounting --> Reporting --> Deferred Revenue` and +click the :guilabel:`Generate Entries` button. This generates two deferral entries: -Choose a different Income Account for specific products -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ +- One dated at the end of the month which aggregates, for each account, all the deferred amounts + of that month. This means that a part of the deferred revenue is recognized at the end of that + period. +- The reversal of this created entry, dated on the following day (i.e., the first day of the + next month) to cancel the previous entry. -Start editing the product, go to the *Accounting* tab, select the right **Income Account**, and -save. +.. example:: + There are two invoices: -.. image:: deferred_revenues/deferred_revenues03.png - :align: center - :alt: Change of the Income Account for a product in Odoo + - Invoice A: $1200 to be deferred from 01/01/2023 to 12/31/2023 + - Invoice B: $600 to be deferred from 01/01/2023 to 12/31/2023 -.. tip:: - It is possible to automate the creation of revenue entries for these products (see: - `Automate the Deferred Revenues`_). + In January + At the end of January, after clicking the :guilabel:`Generate Entries` button, there are the + following entries: -Change the account of a posted journal item -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ + - Entry 1 dated on the 31st January: -To do so, open your Sales Journal by going to -:menuselection:`Accounting --> Accounting --> Sales`, select the journal item you -want to modify, click on the account, and select the right one. + - Line 1: Expense account -1200 -600 = **-1800** (cancelling the total of both invoices) + - Line 2: Expense account 100 + 50 = **150** (recognizing 1/12 of invoice A and invoice B) + - Line 3: Deferred account 1800 - 150 = **1650** (amount that has yet to be deferred later + on) -.. image:: deferred_revenues/deferred_revenues04.png - :align: center - :alt: Modification of a posted journal item's account in Odoo Accounting + - Entry 2 dated on the 1st February, the reversal of the previous entry: -Deferred Revenues entries -========================= + - Line 1: Expense account **1800** + - Line 2: Deferred account **-150** + - Line 3: Expense account **-1650** -Create a new entry ------------------- + In February + At the end of February, after clicking the :guilabel:`Generate Entries` button, there are the + following entries: -A **Deferred Revenues entry** automatically generates all journal entries in *draft mode*. They are -then posted one by one at the right time until the full amount of the income is recognized. + - Entry 1 dated on the 28th February: -To create a new entry, go to :menuselection:`Accounting --> Accounting --> Deferred Revenues`, click -on *Create*, and fill out the form. + - Line 1: Expense account -1200 -600 = **-1800** (cancelling the total of both invoices) + - Line 2: Expense account 200 + 100 = **300** (recognizing 2/12 of invoice A and invoice B) + - Line 3: Deferred account 1800 - 300 = **1500** (amount that has yet to be deferred later + on) -Click on **select related purchases** to link an existing journal item to this new entry. Some -fields are then automatically filled out, and the journal item is now listed under the **Related -Sales** tab. + - Entry 2 dated on the 1st March, the reversal of the previous entry. -.. image:: deferred_revenues/deferred_revenues05.png - :align: center - :alt: Deferred Revenue entry in Odoo Accounting + From March to October + The same computation is done for each month until October. -Once done, you can click on *Compute Revenue* (next to the *Confirm* button) to generate all the -values of the **Revenue Board**. This board shows you all the entries that Odoo will post to -recognize your revenue, and at which date. + In November + At the end of November, after clicking the :guilabel:`Generate Entries` button, there are the + following entries: -.. image:: deferred_revenues/deferred_revenues06.png - :align: center - :alt: Revenue Board in Odoo Accounting + - Entry 1 dated on the 30th November: -What does "Prorata Temporis" mean? -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ + - Line 1: Expense account -1200 -600 = **-1800** (cancelling the total of both invoices) + - Line 2: Expense account 1100 + 550 = **1650** (recognizing 11/12 of invoice A and invoice + B) + - Line 3: Deferred account 1800 - 1650 = **150** (amount that has yet to be deferred later + on) -The **Prorata Temporis** feature is useful to recognize your revenue the most accurately possible. + - Entry 2 dated on the 1st December, the reversal of the previous entry. -With this feature, the first entry on the Revenue Board is computed based on the time left between -the *Prorata Date* and the *First Recognition Date* rather than the default amount of time between -recognitions. + In December + There is no need to generate entries in December. Indeed, if we do the computation for + December, we have an amount of 0 to be deferred. -For example, the Revenue Board above has its first revenue with an amount of $ 4.22 rather than -$ 70.00. Consequently, the last entry is also lower and has an amount of $ 65.78. + In total + If we aggregate everything, we would have: -Deferred Entry from the Sales Journal -------------------------------------- + - invoice A and invoice B + - two entries (one for the deferral and one for the reversal) for each month from January to + November -You can create a deferred entry from a specific journal item in your **Sales Journal**. - -To do so, open your Sales Journal by going to -:menuselection:`Accounting --> Accounting --> Sales`, and select the journal item you want to defer. -Make sure that it is posted in the right account (see: -`Change the account of a posted journal item`_). - -Then, click on *Action*, select **Create Deferred Entry**, and fill out the form the same way you -would do to `create a new entry`_. - -.. image:: deferred_revenues/deferred_revenues07.png - :align: center - :alt: Create Deferred Entry from a journal item in Odoo Accounting - -Deferred Revenue Models -======================= - -You can create **Deferred Revenue Models** to create your Deferred Revenue entries faster. - -To create a model, go to :menuselection:`Accounting --> Configuration --> Deferred Revenue Models`, -click on *Create*, and fill out the form the same way you would do to create a new entry. - -.. tip:: - You can also convert a *confirmed Deferred Revenue entry* into a model by - opening it from :menuselection:`Accounting --> Accounting --> Deferred - Revenues` and then, by clicking on the button *Save Model*. - -Apply a Deferred Revenue Model to a new entry ---------------------------------------------- - -When you create a new Deferred Revenue entry, fill out the **Deferred Revenue Account** with the -right recognition account. - -New buttons with all the models linked to that account appear at the top of the form. Clicking on a -model button fills out the form according to that model. - -.. image:: deferred_revenues/deferred_revenues08.png - :align: center - :alt: Deferred Revenue model button in Odoo Accounting - -.. _deferred-revenues-automation: - -Automate the Deferred Revenues -============================== - -When you create or edit an account of which the type is either *Current Liabilities* or *Non-current -Liabilities*, you can configure it to defer the revenues that are credited on it automatically. - -You have three choices for the **Automate Deferred Revenue** field: - -#. **No:** this is the default value. Nothing happens. -#. **Create in draft:** whenever a transaction is posted on the account, a draft *Deferred Revenues - entry* is created, but not validated. You must first fill out the form in - :menuselection:`Accounting --> Accounting --> Deferred Revenues`. -#. **Create and validate:** you must also select a Deferred Revenue Model (see: - `Deferred Revenue Models`_). Whenever a transaction is posted on the account, a *Deferred - Revenues entry* is created and immediately validated. - -.. image:: deferred_revenues/deferred_revenues09.png - :align: center - :alt: Automate Deferred Revenue on an account in Odoo Accounting - -.. tip:: - You can, for example, select this account as the default **Income Account** of a product to fully - automate its sale. (see: `Choose a different Income Account for specific products`_). - -.. seealso:: - * :doc:`../get_started/chart_of_accounts` - * `Odoo Academy: Deferred Revenues (Recognition) `_ + Therefore, at the end of December, invoices A and B are fully recognized as income + only once in spite of all the created entries thanks to the reversal mechanism. diff --git a/content/applications/finance/accounting/customer_invoices/deferred_revenues/deferred_revenue_report.png b/content/applications/finance/accounting/customer_invoices/deferred_revenues/deferred_revenue_report.png new file mode 100644 index 000000000..c3e756f8f Binary files /dev/null and b/content/applications/finance/accounting/customer_invoices/deferred_revenues/deferred_revenue_report.png differ diff --git a/content/applications/finance/accounting/customer_invoices/deferred_revenues/deferred_revenues01.png b/content/applications/finance/accounting/customer_invoices/deferred_revenues/deferred_revenues01.png deleted file mode 100644 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+---------------+--------------+-------------------------+ -Assets, deferred expenses, and deferred revenues automation -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ +Assets +~~~~~~ -Some **account types** can **automate** the creation of :ref:`assets ` entries, -:ref:`deferred expenses ` entries, and -:ref:`deferred revenues ` entries. To **automate** entries, click -:guilabel:`Setup` on an account line and go to the :guilabel:`Automation` tab. +Some **account types** can **automate** the creation of :ref:`asset ` entries. +To **automate** entries, click :guilabel:`Setup` on an account line and go to the +:guilabel:`Automation` tab. You have three choices for the :guilabel:`Automation` tab: diff --git a/content/applications/finance/accounting/vendor_bills/deferred_expenses.rst b/content/applications/finance/accounting/vendor_bills/deferred_expenses.rst index e929250ac..0ad279847 100644 --- a/content/applications/finance/accounting/vendor_bills/deferred_expenses.rst +++ b/content/applications/finance/accounting/vendor_bills/deferred_expenses.rst @@ -1,195 +1,176 @@ -================================= -Deferred expenses and prepayments -================================= +================= +Deferred expenses +================= -**Deferred expenses** and **prepayments** (also known as **prepaid expense**), are both costs that -have already occurred for unconsumed products or services yet to receive. +**Deferred expenses** and **prepayments** (also known as **prepaid expenses**) are both costs that +have already occurred for products or services yet to be received. Such costs are **assets** for the company that pays them since it already paid for products and -services still to receive or that are yet to be used. The company cannot report them on the current -**Profit and Loss statement**, or *Income Statement*, since the payments will be effectively -expensed in the future. +services but has either not yet received them or not yet used them. The company cannot report them +on the current **profit and loss statement**, or *income statement*, since the payments will be +effectively expensed in the future. These future expenses must be deferred on the company's balance sheet until the moment in time they -can be **recognized**, at once or over a defined period, on the Profit and Loss statement. +can be **recognized**, at once or over a defined period, on the profit and loss statement. -For example, let's say we pay $ 1200 at once for one year of insurance. We already pay the cost now +For example, let's say we pay $1200 at once for one year of insurance. We already pay the cost now but haven't used the service yet. Therefore, we post this new expense in a *prepayment account* and -decide to recognize it on a monthly basis. Each month, for the next 12 months, $ 100 will be +decide to recognize it on a monthly basis. Each month, for the next 12 months, $100 will be recognized as an expense. -Odoo Accounting handles deferred expenses and prepayments by spreading them in multiple entries that -are automatically created in *draft mode* and then posted periodically. +Odoo Accounting handles deferred expenses by spreading them across multiple entries that are +posted periodically. .. note:: The server checks once a day if an entry must be posted. It might then take up to 24 hours before - you see a change from *draft* to *posted*. + you see a change from :guilabel:`Draft` to :guilabel:`Posted`. -Prerequisites +Configuration ============= -Such transactions must be posted on a **Deferred Expense Account** rather than on the default -expense account. +Make sure the default settings are correctly configured for your business. To do so, go to +:menuselection:`Accounting --> Configuration --> Settings`. The following options are available: -Configure a Deferred Expense Account ------------------------------------- +Journal + The deferral entries are posted in this journal. +Deferred Expense Account + Expenses are deferred on this Current Asset account until they are recognized. +Deferred Revenue Account + Revenues are deferred on this Current Liability account until they are recognized. +Generate Entries + By default, Odoo :ref:`automatically generates ` + the deferral entries when you post a vendor bill. However, you can also choose to + :ref:`generate them manually ` by selecting the + :guilabel:`Manually & Grouped` option instead. +Amount Computation + Suppose a bill of $1200 must be deferred over 12 months. The :guilabel:`Equal per month` + computation recognizes $100 each month, while the :guilabel:`Based on days` computation recognizes + different amounts depending on the number of days in each month. -To configure your account in the **Chart of Accounts**, go to :menuselection:`Accounting --> -Configuration --> Chart of Accounts`, click on *Create*, and fill out the form. +.. _vendor_bills/deferred/generate_on_validation: -.. image:: deferred_expenses/deferred_expenses01.png - :align: center - :alt: Configuration of a Deferred Expense Account in Odoo Accounting +Generate deferral entries on validation +======================================= + +.. tip:: + Make sure the :guilabel:`Start Date` and :guilabel:`End Date` fields are visible in the + :guilabel:`Invoice Lines` tab. In most cases, the :guilabel:`Start Date` should be in the same + month as the :guilabel:`Bill Date`. + +For each line of the bill that should be deferred, specify the start and end dates of the deferral +period. + +If the :guilabel:`Generate Entries` field is set to :guilabel:`On invoice/bill validation`, Odoo +automatically generates the deferral entries when the bill is validated. Click on the +:guilabel:`Deferred Entries` smart button to see them. + +One entry, dated on the same day as the bill, moves the bill amounts from the expense account to +the deferred account. The other entries are deferral entries which will, month after month, move the +bill amounts from the deferred account to the expense account to recognize the expense. + +.. example:: + You can defer a January bill of $1200 over 12 months by specifying a start date of 01/01/2023 + and an end date of 12/31/2023. At the end of August, $800 is recognized as an expense, + whereas $400 remains on the deferred account. + +Reporting +========= + +The deferred expense report computes an overview of the necessary deferral entries for each account. +To access it, go to :menuselection:`Accounting --> Reporting --> Deferred Expense`. + +To view the journal items of each account, click on the account name and then :guilabel:`Journal +Items`. + +.. image:: deferred_expenses/deferred_expense_report.png + :alt: Deferred expense report .. note:: - This account's type must be either *Current Assets* or *Prepayments* + Only bills whose accounting date is before the end of the period of the report + are taken into account. -Post an expense to the right account ------------------------------------- +.. _vendor_bills/deferred/generate_manually: -Select the account on a draft bill -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ +Generate grouped deferral entries manually +========================================== -On a draft bill, select the right account for all the products of which the expenses must be -deferred. +If you have a lot of deferred revenues and wish to reduce the number of journal entries created, you +can generate deferral entries manually. To do so, set the :guilabel:`Generate Entries` field in the +**Settings** to :guilabel:`Manually & Grouped`. Odoo then aggregates the deferred amounts in a +single entry. -.. image:: deferred_expenses/deferred_expenses02.png - :align: center - :alt: Selection of a Deferred Expense Account on a draft bill in Odoo Accounting +At the end of each month, go to the Deferred Expenses report and click the +:guilabel:`Generate Entries` button. This generates two deferral entries: -Choose a different Expense Account for specific products -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ +- One dated at the end of the month which aggregates, for each account, all the deferred amounts + of that month. This means that at the end of that period, a part of the deferred expense is + recognized. +- The reversal of this created entry, dated on the following day (i.e., the first day of the + next month) to cancel the previous entry. -Start editing the product, go to the *Accounting* tab, select the right **Expense Account**, and -save. +.. example:: -.. image:: deferred_expenses/deferred_expenses03.png - :align: center - :alt: Change of the Expense Account for a product in Odoo + There are two bills: -.. tip:: - It is possible to automate the creation of expense entries for these products (see: - `Automate the Deferred Expenses`_). + - Bill A: $1200 to be deferred from 01/01/2023 to 12/31/2023 + - Bill B: $600 to be deferred from 01/01/2023 to 12/31/2023 -Change the account of a posted journal item -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ + In January + At the end of January, after clicking the :guilabel:`Generate Entries` button, + there are the following entries: -To do so, open your Purchases Journal by going to :menuselection:`Accounting --> Accounting --> -Purchases`, select the journal item you want to modify, click on the account, and select the right -one. + - Entry 1 dated on the 31st January: -.. image:: deferred_expenses/deferred_expenses04.png - :align: center - :alt: Modification of a posted journal item's account in Odoo Accounting + - Line 1: Expense account -1200 -600 = **-1800** (cancelling the total of both bills) + - Line 2: Expense account 100 + 50 = **150** (recognizing 1/12 of bill A and bill B) + - Line 3: Deferred account 1800 - 150 = **1650** (amount that has yet to be deferred later + on) -Deferred Expenses entries -========================= + - Entry 2 dated on the 1st February, the reversal of the previous entry: -Create a new entry ------------------- + - Line 1: Expense account **1800** + - Line 2: Deferred account **-150** + - Line 3: Expense account **-1650** -A **Deferred Expense entry** automatically generates all journal entries in *draft mode*. They are -then posted one by one at the right time until the full amount of the expense is recognized. + In February + At the end of February, after clicking the :guilabel:`Generate Entries` button, + there are the following entries: -To create a new entry, go to :menuselection:`Accounting --> Accounting --> Deferred Expense`, click -on *Create*, and fill out the form. + - Entry 1 dated on the 28th February: -Click on **select related purchases** to link an existing journal item to this new entry. Some -fields are then automatically filled out, and the journal item is now listed under the **Related -Expenses** tab. + - Line 1: Expense account -1200 -600 = **-1800** (cancelling the total of both bills) + - Line 2: Expense account 200 + 100 = **300** (recognizing 2/12 of bill A and bill B) + - Line 3: Deferred account 1800 - 300 = **1500** (amount that has yet to be deferred later + on) -.. image:: deferred_expenses/deferred_expenses05.png - :align: center - :alt: Deferred Expense entry in Odoo Accounting + - Entry 2 dated on the 1st March, the reversal of the previous entry. -Once done, you can click on *Compute Deferral* (next to the *Confirm* button) to generate all the -values of the **Expense Board**. This board shows you all the entries that Odoo will post to -recognize your expense, and at which date. + From March to October + The same computation is done for each month until October. -.. image:: deferred_expenses/deferred_expenses06.png - :align: center - :alt: Expense Board in Odoo Accounting + In November + At the end of November, after clicking the :guilabel:`Generate Entries` button, + there are the following entries: -What does "Prorata Temporis" mean? -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ + - Entry 1 dated on the 30th November: -The **Prorata Temporis** feature is useful to recognize your expense the most accurately possible. + - Line 1: Expense account -1200 -600 = **-1800** (cancelling the total of both bills) + - Line 2: Expense account 1100 + 550 = **1650** (recognizing 11/12 of bill A and bill B) + - Line 3: Deferred account 1800 - 1650 = **150** (amount that has yet to be deferred later + on) -With this feature, the first entry on the Expense Board is computed based on the time left between -the *Prorata Date* and the *First Recognition Date* rather than the default amount of time between -recognitions. + - Entry 2 dated on the 1st December, the reversal of the previous entry. -For example, the Expense Board above has its first expense with an amount of $ 70.97 rather than -$ 100.00. Consequently, the last entry is also lower and has an amount of $ 29.03. + In December + There is no need to generate entries in December. Indeed, if we do the computation for + December, we will have an amount of 0 to be deferred. -Deferred Entry from the Purchases Journal ------------------------------------------ + In total + If we aggregate everything, we would have: -You can create a deferred entry from a specific journal item in your **Purchases Journal**. + - bill A and bill B + - two entries (one for the deferral and one for the reversal) for each month from January to + November -To do so, open your Purchases Journal by going to :menuselection:`Accounting --> Accounting --> -Purchases`, and select the journal item you want to defer. Make sure that it is posted in the right -account (see: `Change the account of a posted journal item`_). - -Then, click on *Action*, select **Create Deferred Entry**, and fill out the form the same way you -would do to `create a new entry`_. - -.. image:: deferred_expenses/deferred_expenses07.png - :align: center - :alt: Create Deferred Entry from a journal item in Odoo Accounting - -Deferred Expense Models -======================= - -You can create **Deferred Expense Models** to create your Deferred Expense entries faster. - -To create a model, go to :menuselection:`Accounting --> Configuration --> Deferred Expense Models`, -click on *Create*, and fill out the form the same way you would do to create a new entry. - -.. tip:: - You can also convert a *confirmed Deferred Expense entry* into a model by opening it from - :menuselection:`Accounting --> Accounting --> Deferred Expenses` and then, by clicking on the - button *Save Model*. - -Apply a Deferred Expense Model to a new entry ---------------------------------------------- - -When you create a new Deferred Expense entry, fill out the **Deferred Expense Account** with the -right recognition account. - -New buttons with all the models linked to that account appear at the top of the form. Clicking on a -model button fills out the form according to that model. - -.. image:: deferred_expenses/deferred_expenses08.png - :align: center - :alt: Deferred Expense model button in Odoo Accounting - -.. _deferred-expenses-automation: - -Automate the Deferred Expenses -============================== - -When you create or edit an account of which the type is either *Current Assets* or *Prepayments*, -you can configure it to defer the expenses that are credited on it automatically. - -You have three choices for the **Automate Deferred Expense** field: - -#. **No:** this is the default value. Nothing happens. -#. **Create in draft:** whenever a transaction is posted on the account, a draft *Deferred Expenses - entry* is created, but not validated. You must first fill out the form in - :menuselection:`Accounting --> Accounting --> Deferred Expenses`. -#. **Create and validate:** you must also select a Deferred Expense Model (see: `Deferred Expense - Models`_). Whenever a transaction is posted on the account, a *Deferred Expenses entry* is - created and immediately validated. - -.. image:: deferred_expenses/deferred_expenses09.png - :align: center - :alt: Automate Deferred Expense on an account in Odoo Accounting - -.. tip:: - You can, for example, select this account as the default **Expense Account** of a product to - fully automate its purchase. (see: `Choose a different Expense Account for specific - products`_). - -.. seealso:: - * :doc:`../get_started/chart_of_accounts` + Therefore, at the end of December, bills A and B are fully recognized as expense only once in + spite of all the created entries thanks to the reversal mechanism. diff --git a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expense_report.png b/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expense_report.png new file mode 100644 index 000000000..5d57ce2bc Binary files /dev/null and b/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expense_report.png differ diff --git a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses01.png b/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses01.png deleted file mode 100644 index 17848259d..000000000 Binary files a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses01.png and /dev/null differ diff --git a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses02.png b/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses02.png deleted file mode 100644 index 106f2ba89..000000000 Binary files a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses02.png and /dev/null differ diff --git a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses03.png b/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses03.png deleted file mode 100644 index c68f476c2..000000000 Binary files a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses03.png and /dev/null differ diff --git a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses04.png b/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses04.png deleted file mode 100644 index 03afc1f1f..000000000 Binary files a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses04.png and /dev/null differ diff --git a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses05.png b/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses05.png deleted file mode 100644 index b2f769446..000000000 Binary files a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses05.png and /dev/null differ diff --git a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses06.png b/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses06.png deleted file mode 100644 index bd00811b5..000000000 Binary files a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses06.png and /dev/null differ diff --git a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses07.png b/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses07.png deleted file mode 100644 index 40a76757b..000000000 Binary files a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses07.png and /dev/null differ diff --git a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses08.png b/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses08.png deleted file mode 100644 index 080e88028..000000000 Binary files a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses08.png and /dev/null differ diff --git a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses09.png b/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses09.png deleted file mode 100644 index 76acbca62..000000000 Binary files a/content/applications/finance/accounting/vendor_bills/deferred_expenses/deferred_expenses09.png and /dev/null differ