This is what happens in the video
When you work with subscriptions in Business Central, you can spread your income across several months automatically using the standard deferral functionality. By assigning a deferral code to the subscription line, the system splits the income over the period you specify and posts it accordingly.
You set the number of months on the deferral code. A deferral code set to 12 months spreads the income evenly over a full year.
You can preview the deferral schedule before posting. Open the deferral details from the three dots on the line to check both the auto-generated text and the amounts before you post the invoice.
Deferring subscription income with deferral codes
Subscriptions are often handled together with the standard deferral functionality in Business Central. This lets you defer your income automatically rather than recognising it all at once.
The setup is straightforward. You assign a deferral code to the subscription, and the system takes care of spreading the income from there. In a typical example, you generate a subscription invoice as a sales invoice, and the subscription already has a deferral code on the line. That code can state that the income should be deferred over 12 months, which means a single deferral code spreads the amount across a full year.
Checking the deferral schedule before posting
It is worth verifying the deferral the first few times you put it into use. The same applies if you have created a new deferral code, or if you simply want to see how the system handles the deferral in a specific case.
To check it, open the line and click the three dots that appear. From there you can confirm two things:
- The text is auto-generated as you expect it to be.
- The amount matches what you expect.
You can adjust the auto-generated text and tweak how the deferral behaves. That is part of the normal standard deferral function, and there are separate guides covering how to change these settings and how to control the generated texts.
Posting the invoice
Once the preview matches your expectations, confirm it and post the invoice. The system then defers your income exactly as you stated on the deferral code.
Q&A
How do you defer subscription income in Business Central?
Assign a deferral code to the subscription line. When you post the invoice, the system spreads the income across the period defined by the code, for example 12 months.
Can you preview the deferral before posting?
Yes. Open the line and click the three dots to view the deferral details. You can check both the auto-generated text and the amounts before posting.
What does a 12-month deferral code do?
It spreads the income from a single subscription invoice evenly across 12 months instead of recognising it all at once.
Can you change the auto-generated deferral text?
Yes. The standard deferral function lets you adjust both the settings and the generated texts.