Amortization

Amortization is an accounting term that refers to the process of allocating the cost of an intangible asset over a period of time. It also refers to the repayment of loan principal over time.

In order to use Amortization module, you need to first define Amortization Schedule.

Amortization Schedule

In Amortization Schedule you will list all the accounts that need to to be Amortized monthly. You select an account, specify the start and end dates of Amortization along with either Debit or Credit value and finally mark it as IsActive.

 

Once the Amortization Schedule is set then you can start posting your Amortization entries periodically every month by using the Amortization module located in the Finance section. The process is simple, just create a new Amortization document and click the GetItems button to load all relevant Amortization items for the posting month. Once the items are loaded, then route the Amortization document for approvals and then finally post it.