New to NetSuite | Amortization Feature: Deferral Accounts

In the previous article, we tackled various Amortization Feature preferences to help you navigate how to utilize this feature in the system.

In this article, we will cover specifying deferral accounts for Amortization. In accounting, a Deferral Account is used to record transactions where the recognition of revenue or expenses is postponed until a future period. These accounts help match revenues and expenses to the correct accounting period in accordance with the accrual basis of accounting.

NetSuite automatically adds a default account with a type of Deferred Expense to the Chart of Accounts when Amortization is enabled. Navigate to Lists > Accounting > Chart of Accounts