When to use multi-year orders?

In Abraxio, a multi-year order allows you to manage the Committed for future Fiscal years

It is particularly useful in the case of multi-annual contracts where you order a single service in year Y that you also commit to in subsequent years. 

A good way to find out whether an order is multi-annual is to identify whether you will, over the coming years :

1. Receive several invoices over several years for this single purchase order → Multi-year order
   
2. Have to place a new order each year to retain the service → Annual order

You will therefore fill in this order only once, specifying the amounts Committed per year :

When extending the budget from Y to Y+1, the Committed for Y+1 will be automatically recorded by Abraxio.

In addition, if you want to be notified of the end of the renewal period for this purchase order so that you do not forget to extend it (or to stop it), you can use the concept of Contracts and Deadlines in the Suppliers module → Coming soon : Contract Deadline Management (abraxio.com).

Even though a multi-year order is very often linked to a prepaid (expenses), the two concepts should not be confused. 

An order for an online service paid for annually for 12 months of actual use (as is the case with Abraxio, for example) is an prepaid expense, but not a multi-year order : the order does cover the next 12 months, but you will receive only one invoice, for Fiscal year Y. You will not therefore have any prepaid expenses. You will therefore not have a Committed order for Y to Y+1 for which you will have to pay an invoice.

If you still want your order start/end dates to show this period of coverage, it is very important NOT to enter a budget for subsequent years.

For more information on prepaid expenses, please refer to the following article →  Coming Soon Management of fixed assets, depreciation charges and prepaid expenses (abraxio.com)

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