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 function can be activated per company in the company's settings in Basecone. You can then spread costs over different periods in the Basecone booking screen.
In this article you can read the following:
- 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 of Basecone, it should be enabled first in the company settings. This default settings of the company is on No and can be activated per company by a user with the role of Super user, Accountant or SME accountant. You can enable this when you go to
Settings > Company > Actions (edit )> Settings tab and scroll down to Deferred costs.
For Twinfield companies, a suspense account must also be set up here. click on the box to enter or select a ledger code.
- Enable settings for Exact
For companies linked to Exact, you enable the option from No to Yes.
How to activate deferred costs in the booking screen
When the deferred costs in the setting is enabled, the option to use deferred costs will be visible in the booking screen. When you mark the checkbox 🗹 to select the deferred costs, the fields from and to per booking line will appear. Here you can indicate the start and end date range on which you want to spread the costs.
When the invoice is booked, the accounting system will automatically divide the costs over the periods that fall within the time range that has been entered in booking.
When the invoice is booked and the booking lines are saved as a posting rule, the deferred cost is saved and will be shown again next time when the supplier is selected. The periods are variable and you will have manually fill them in again. If necessary, you can also activate this setting for the suppliers in the company's settings and save it as a booking line. See our article "Posting rules" for more information.
Before you start booking deferred costs, two settings must enabled first:
- A suspense account must be set in the company settings in Basecone. This is required for making the corresponding memorial bookings. Read above how to set this up.
- Free text field 3 must be enabled in Twinfield for the journal booking. You can enable this setting when you go to Settings > Company settings > Transaction types > Journal. In this article you can read more how you can set this up.
If you are not able to access the Transaction types, I would advise you to contact your Twinfield administrator to help you.
Spreading costs over the desired period is done by Basecone through the journal entry. These journal entries are recorded with the invoice number of the purchase invoice and in the description the period allocation.
[PV] is added in the description to make it clear that these journal entries are related to the deferred cost bookings. In addition, the journal entries will also have a link to view the invoice from Basecone. Ensure that point 2 above is setup in Twinfield.
There are two differences with the functionality in Twinfield. From Basecone it is possible to distribute at rule level over the periods. A booking with deferred costs do not have to be booked as a finalized booking, this can also be booked as provisional.
Please read this article "Oops! Something went wrong with this booking" if you get this error message in your booking screen.
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.