Deferral Description

Enhanced Deferral Description Handling in Purchase and Sales Documents

Overview

This functionality improves the handling of descriptions in deferral schedules when posting purchase and sales documents in Microsoft Dynamics 365 Business Central. Instead of using the default description from the deferral template, the system now transfers the description directly from the purchase or sales line. This ensures more accurate and relevant descriptions in financial reporting and deferral tracking.

Key Benefits

• Improved Accuracy – Ensures that deferral entries reflect the exact description from the original transaction.
• Consistency in Reporting – Aligns financial deferral descriptions with purchase and sales document details.
• Reduced Manual Adjustments – Minimizes the need for users to modify deferral descriptions after posting.

How It Works

1. A purchase or sales document is created with a detailed line description.
2. When a Deferral Code is added to a purchase or sales line, and the associated deferral template has Auto Description enabled, the system automatically applies the description from the purchase/sales line to the deferral schedule lines. 
3. Upon posting, the deferral schedule lines retain the description from the purchase or sales line, ensuring that deferred revenue or expense entries reflect the original transaction details rather than the default deferral template description.

Use Case Example

A company purchases an annual software subscription for DKK 12,000, which is deferred over 12 months. Previously, the deferral entry used a generic template description such as "Deferred Expense – Subscription." With this enhancement, the deferral schedule now uses the specific description from the purchase line, e.g., "Microsoft 365 Annual Subscription – 2025."

Availability and Setup
This feature is not available in standard Business Central configurations and requires additional setup. When setup, users simply create and post purchase or sales documents with deferral schedules, and the system applies the enhanced description handling automatically. See help link for further information regarding setup.

Steps:

1. Open the Deferral Template:
• Navigate to the deferral template in your accounting software.
2. Locate the "Auto Description" Field:
• Find the boolean field labeled "Automatic Description" within the template.
3. Enable the "Auto Description" Field:
• Set this field to true to ensure the description from the purchase/sales line will automatically populate the deferral plan lines.
4. Save the Template:
• Ensure you save the changes made to the deferral template.
5. Set the Deferral Code on the Line:
• When you set the deferral code on the purchase or sales line, the description from the purchase/sales line will automatically fill the deferral plan lines.

This setup ensures that the descriptions are consistent and accurately reflect the details from the purchase or sales documents.