What is deferred expense in SAP RE - Real Estate Management?

SAP Term: deferred expense

• Component: RE

• Component Name: Real Estate Management

• Description: Expenses that are allocated in part, or in full, to an accounting period subsequent to the periods in which they are paid. Such expenses must be deferred to guarantee a correct income statement. This process is known as "Deferred Expenses". In , the "Deferred Expenses" process is applicable to vendor contracts that have the condition type "rent paid in advance"

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• Key Concepts: 
  Deferred expenses in SAP Real Estate Management (RE) are costs that are incurred but not yet paid. These expenses are recorded as liabilities on the balance sheet and are recognized as expenses when they are paid. Examples of deferred expenses include prepaid rent, prepaid insurance, and prepaid maintenance. 
  
  How to use it: 
  In SAP RE, deferred expenses are recorded as liabilities on the balance sheet. When the expense is paid, it is recognized as an expense in the income statement. The deferred expense can be tracked in the system by its associated asset or lease. 
  Tips & Tricks: 
  When recording deferred expenses in SAP RE, it is important to ensure that the correct asset or lease is associated with the expense. This will ensure that the expense is properly tracked and accounted for in the system. 
  Related Information: 
  Deferred expenses are a type of non-cash expense that is recognized over time. Other types of non-cash expenses include depreciation and amortization. It is important to understand how these types of expenses are recorded and accounted for in order to properly manage a company's financials.