Deferred adjustments for charges constatées d’avance (CCA)

Deferred adjustments for charges constatées d’avance (CCA) in Accounts Payable lets you accommodate for amounts paid in advance for goods and services that span multiple accounting periods. With Deferred adjustments for produits constatés d’avance (PCA) in Accounts Receivable, this feature helps you avoid overstating revenue and expenses in a current period and aligns with the principles outlined in the French General Accounting Plan (Plan Comptable Général, or PCG).

About

With Deferred adjustments for CCA and PCA, you can post a transaction in one period, and then generate a schedule that divides the transaction amounts paid (CCA) or received (PCA) over a user-defined number of monthly, quarterly, or annual periods.

Deferred adjustments automatically post to the General Ledger account at the start of the schedule period. At the end of the schedule period, the amount to allocate to future installments reverts back to the originating account.

For example, you sign a service contract with a software provider for a term of five years and pay the entire amount up front. To spread the cost over the term of the contract rather than have it concentrated in the payment period, you can generate a deferred adjustment schedule. When you do this, the entire paid amount posts to the General Ledger account, but at the end of the first schedule period, the unused portion reverts back to the originating account to be paid in the subsequent period. This automated post and revert payment continues according to the schedule over the course of the contract.

Workflow

  1. Configure Deferred adjustments.

    1. Enable Deferred adjustments for CCA and PCA in Accounts Payable.

    2. Set up a Deferred adjustments template with a monthly, quarterly, or annual schedule period.

  2. Apply the Deferred adjustments template to a bill or an invoice to generate a payment schedule.

  3. View the payment schedule to verify posted and upcoming payments, review errors, and manually post payments.

  4. Run a Deferred adjustments forecast report.

Regional availability

The Deferred adjustments for CCA feature is generally available in the following regions:

  • France

Additional information or limitations

To enable Deferred adjustments for CCA and PCA, you must have a company or an entity with an operating country set to France. To access Deferred adjustment features, you must have France as the operating country for the Company or Entity you are using.