In order to be able to spread costs of an invoice over different periods, you can use the option deferred costs. This can be useful for booking costs that are paid annually, but that you want to distribute it over multiple periods to which these cost relates to. Consider, for example, costs for insurances or subscriptions.
This article will cover the following topics:
- Enable deferred costs in the company settings
- How to activate deferred costs in the booking screen
- Twinfield settings
- Exact Online settings
Enable deferred costs in the company settings
Before you can use this function in the booking screen, the setting must be enabled first in Basecone. This function is disabled by default. A user with the role of Super user, Accountant or SME Accountant can enable this per company when you go to Settings > Company > Actions (edit ) > tab Settings and scroll down to Deferred costs.
For companies linked to Twinfield, change the setting from No to Yes. Click on the box Suspense account to select a ledger code.
Enable settings for Exact
For companies linked to Exact, change the setting from No to Yes.
How to activate deferred costs in the booking screen
When the deferred costs setting is enabled in the company settings, the option to use deferred costs will be visible in the booking screen. When you click on the checkbox 🗹 to select the deferred costs, an additional line will appear. Here you can indicate the start date (from) and end date (to) on which you want to spread the costs.
📌 It is only possible to spread costs to a maximum of three years;
previous year, current year and a future year.
After the invoice is booked with deferred cost, the accounting system will automatically divide the costs over the periods selected in the booking screen.
If you save this as a posting rule, the deferred cost is also saved and the fields From and To will appear again next time the supplier is selected. However, you need to manually select the dates before booking it.
Before you can start booking deferred costs, set the setting to Yes and also set up a suspense account. After that the option deferred costs is available in the booking screen.
Since January 15, 2021, you can find the booking in the cost distribution diary (dagboek kostenverdeling) in Twinfield. Previously, these bookings with deferred costs were booked as general journal.
There are two differences with the functionality in Twinfield. From Basecone it is also possible to spread over periods at line level. In addition, a booking with deferred costs does not have to be booked as final, this can also be booked as a draft.
Exact Online Settings
Before using deferred costs in Basecone, this will need to first be set up in Exact.
A general ledger account must be set up in Exact Online in the company's settings that is used as a suspense account. In addition, a journal must also be set here.
Have you already enabled this setting? Please click here to read more on what settings needs to be enabled in Exact.