Amortization Code When using Deferred Revenue and Milestone Billing

Amortization codes are needed when using Deferred Revenue from what I understand. We use Deferred Revenue so that when we finish the work, we collect using Deferred Revenue, but there is no set date or anything for when the money is due, it can be whenever, as long as we set the Milestone to complete and send out the invoice.

Using this method of Deferred Revenue, how would we setup an Amortization code?

Hi Iggy, you don’t need an amortization code for Deferred Revenue. Amortization has to do with paying off debt, which would be on the payables side (“deferred expense”).

For deferred revenue, you just need to make sure there is an account set in the AR GL control code(s).


ahhh ok, I was reading that it was needed, and I was confused because it was for AR not AP, so cool, thank you.

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