Understanding and Setting Up Deferrals in Business Central
In Microsoft Dynamics 365 Business Central, deferrals are a powerful feature that allow you to automatically spread revenues or expenses across multiple accounting periods—rather than recording the full amount in a single posting period. This ensures that your financial statements more accurately reflect the timing of income and expenses, which is critical for compliance and for presenting a true picture of your organization’s financial health.
With deferrals, the system automatically allocates the correct portions of a transaction into the appropriate months or periods, removing the need for manual journal adjustments and reducing the risk of errors. To wee a step by step process click here!