Deferred Cost Journal Entry
When you save the revenue arrangement with costs recorded, a deferred cost journal entry is created to accrue the deferred costs for amortization. The general ledger impact of the source transactions is not affected. The deferral journal entry debits the designated deferred expense account and credits the expense account.
A link to the current journal entry appears in the revenue arrangement in the Deferred Cost Journal Entry field. The deferred cost journal entry also includes a link to the revenue arrangement in its Related Records subtab.
By default, the date of the deferred cost journal entry is the same as the revenue arrangement date. However, the Contract Cost Accrual Date field on the revenue arrangement enables you to select a different date for the journal entry.
An optional third account is provided on the revenue arrangement for direct contract acquisition costs, the expense source account. When you select a Contract Acquisition Expense Source Account, NetSuite uses this account instead of the Contract Acquisition Expense Account.
The system reverses the deferred cost journal entry and creates a new one when you change the cost accrual date, accounts, or values. You cannot change any accounts related to the contract acquisition cost after revenue plans have been created. Links to all deferred cost journal entries appear on the Related Records subtab of the revenue arrangement.
When you merge revenue arrangements, NetSuite reverses any contract cost deferral journal entries. Those contract cost deferrals and their reversals remain linked to the old revenue arrangements as related records. The new revenue arrangement gets a new contract cost deferral with links in the Deferred Cost Journal Entry field and on the Related Records subtab.
After cost amortization plans have been created, you cannot delete the deferred cost journal entry without first deleting the cost amortization plans. For more information, see Cost Amortization Plans.