Deferrals for storage billing will be in effect when the Use Deferred flag is set and the Billing Cycle of the run is for a period longer than a month.
Assuming that a quarterly billing run is taking place and a billing record is encountered for $600.00 per quarter. $600.00 will post to the account receivable (of the branch of the order), $400.00 will post to the deferred storage GL (defined in the Storage Deferral Setup) and $200.00 will post to Revenue.
On the two subsequent billing runs (next two months), the application will move $200.00 for each of the remaining months from the deferred storage GL to Revenue. These are strictly General Ledger entries since the entries were already generated through Recurring Billing Management.
As indicated in the transactions below, there are three monthly billings in a quarter and the first billing run debits the account receivables for the full quarterly payment of $600.00 and the Deferred Storage GL ends up being cleared by the end of the quarter.
Initial Billing Run (Month 1):
(Example of a $600.00 quarterly billing with a Next Bill Date of July 1)
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Accounts Receivable |
Deferred Storage GL (From Storage Deferral Setup) |
Revenue | ||||||
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First Billing |
200.00 |
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200.00 | |||||
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Second Billing |
200.00 |
200.00 |
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Third Billing |
200.00 |
200.00 |
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Second Month Billing Run (August 1):
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Accounts Receivable |
Deferred Storage GL (From Storage Deferral Setup) |
Revenue | ||||||
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Second Billing |
200.00 |
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200.00 | ||||
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Third Month Billing Run (September 1):
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Accounts Receivable |
Deferred Storage GL (From Storage Deferral Setup) |
Revenue | ||||||
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Third Billing |
200.00 |
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200.00 | ||||
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