Generating Amortization Journal Entries

After expense and item amounts from bills and bill credits have posted to deferred expense accounts, these amounts need to be recognized and moved to expense accounts at appropriate intervals.

Amortization schedules provide a basis for the generation of journal entries to post this impact to the general ledger. You can use the Create Amortization Journal Entries page to create journal entries that post deferred expenses. This page lists amounts from all schedules that are due to post. Amortization journal entries for vendor bills typically debit expense accounts and credit deferred expense accounts.

To recognize a deferred expense:

Go to Transactions > Financial > Create Amortization Journal Entries.

You can also get to this page directly from your dashboard. This navigation is available when you set up the Amortization Entries Pending reminder. See Setting Up a Reminder for Amortization Journal Entries.
Select a posting period to display the schedules with unposted amortization journal entries for that period.
In the Journal Entry Date field, set the transaction date of amortization journal entries you are creating.

You can set the default date that shows in this field by setting a preference at Setup > Accounting > Accounting Preferences. Select a date in the Default Revenue Recognition Journal Date to field.
If your role has permission to enter journal entries that are approved, check the Approve Journal box to approve the journal entry when you save it. Clear this box to submit this journal entry for approval after it is entered.
Select values for the following required filters if they appear in your account:
- Subsidiary – This required filter appears only on NetSuite OneWorld implementations.
- Accounting Book – This required filter appears only when the Multi-Book Accounting feature is enabled.
Use the other filters at the top of the page to limit the list of amortization schedules displayed for this period. The filters you select become your default for this page.
- Transaction Type – The type of source transaction.
- Name – Name of the entity associated with the schedule.
- Type – The type of amortization schedule.
- Item Type – The type of item.
- Original Account – On this page, the original account is the same as the deferral account.
- Target Account – The expense account used to record amortized expenses over time.
- Deferral Account – The Deferred Expense type account used to post the prepaid expense or the initial cost of an asset to be depreciated.
- Transaction Date, From and To – When you select a date range in the Transaction Date field, the From and To fields are automatically populated. If you enter or select dates directly in the From and To fields, the Transaction Date field displays (Custom).
In the Select Individual Schedules field:
- Check the Select Individual Schedules box to create only one journal entry. After you have filtered the list to show specific schedules, you can check the box in the Select column next to each schedule you want to include in the journal entry. When you click Create Journal Entries, you create one journal entry for all schedules that you marked.
  
  If there are multiple segment or pages of schedules, when selecting schedules the following is true:
  - If you click Mark All or Unmark All, only boxes on the current segment or page are affected.
  - You must click Create Journal Entries to create an entry for each segment or page of schedules.
- Clear the Select Individual Schedules box to create one or more journal entries. After you have filtered the list to show particular schedules, when you click Create Journal Entries, you create multiple journal entries for all schedules that show in the list including all segments or pages of the list. It is not necessary to submit each page individually.
  
  If you do not filter the list of schedules, a journal entry is created for every schedule for the period selected, even if there are hundreds of schedules, or more.
  
  The maximum number of entries for schedules that can be created at one time 10,000.
Click Create Journal Entries.
On the Create Journal Entries Status page, do the following:
1. Click Refresh to update the status.
2. When Percent Complete is 100.0%, in the Status column, click Complete.
3. On the Processed Schedules page, in the Journal column, click the links to view individual journals.

To recognize a deferred expense:

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