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

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.

  • Twinfield

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 cost to a maximum of three years;
previous year 2018, current year 2019 and a future year 2020.

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. 

Twinfield Settings

Before you can start booking deferred costs, two settings must enabled first:

  1. In Basecone, a suspense account must be setup in the company settings. This is required to make the corresponding journal bookings. Control the settings here.
  2. In Twinfield. the free text field 3 must be setup for the journal type. Control this when you go to Settings > Company settings > Transaction types > Journal. In this article you can read more how you can set this up.

Spreading costs over the desired period is done in Basecone through journal entries. Each journal entry will have it's own transaction number and a link to open the invoice from Basecone. Ensure that point 2 above is setup correctly in Twinfield. If you are not able to access this setting, please contact your Twinfield administrator.

Recognizing a journal entry as deferred cost:

  • For UK environments
    The code [SP] is added in the description field in Twinfield to make it clear that these journal entries are related to deferred cost bookings. This code stands for Spread periods.
  • For NL environments
    The code [PV] is added in the description field in Twinfield to make it clear that these journal entries are related to deferred cost bookings. This code stands for Periode verdeling.

📌 This code [SP] or [PV] is automatically generated in Twinfield and therefore not visible in Basecone in the description field. This code uses a total of 5 characters and shortens the description you are allowed to book in Basecone. In this case, it is only allowed a maximum of 35 characters including space as the description.

There are two differences with the functionality in Twinfield. 

  • In Basecone it is possible to divide cost on a posting line level;
  • A booking as deferred costs do not have to be booked as final, this can also be booked as provisional.

If you get this error on your booking screen, "Oops! Something went wrong with this booking", follow the instructions on the article to have this solved.

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.

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