Accounting releases control how and when transactions are recognized in your ledger. Light provides a flexible release framework for managing depreciation, prepayments, deferred revenue, and other amo...
Last updated Apr 8, 2026 · 4 min read
An accounting release is a rule that breaks down a single transaction into multiple ledger entries across time. Rather than recording an amount entirely in one period, releases spread recognition according to a defined schedule.
Release templates define the pattern. When you apply a template to an invoice line, Light automatically generates the corresponding ledger entries across the specified period, posting them on their scheduled dates.
Each release template includes:
Duration and period: The length of time over which the release occurs and how frequently entries post. A 12-month template with monthly releases creates 12 individual ledger entries.
Release pattern: How the amount is distributed. Light supports straight-line (equal portions each period), declining balance, and custom allocation patterns.
Balance sheet account (Contra account): The release template requires a balance sheet account — this is where the full amount is initially parked. For prepayments, this would be a prepaid asset account; for depreciation, a fixed asset account; for deferred revenue, a deferred revenue liability account. When you apply the template to a transaction line, Light automatically moves the entire amount to this balance sheet account and releases it to the expense/revenue account over time.
Currency handling: Specify whether releases use the transaction currency, local entity currency, or group currency for each posting.
Deferred revenue (also called unearned revenue) occurs when you receive payment before delivering goods or services. Create a release template by:
Tip: Use descriptive template names that include the duration and purpose, such as "24-Month SaaS Deferred Revenue" or "3-Year Prepaid Maintenance".
Prepayments are amounts paid for future goods or services not yet delivered. Create a prepayment release template similarly:
Fixed assets lose value over time through use and obsolescence. Depreciation templates allocate this loss systematically:
Once templates are configured, apply them when entering transactions:
How it works: When you post the transaction, Light automatically moves the entire amount to the balance sheet account configured in the template. The release engine then systematically releases the amount from the balance sheet account to your selected expense/revenue account according to the template schedule.
Important: You do not need to manually book to the balance sheet account. Pick the expense account on the line, assign the template, and Light handles the rest.
This example shows how to record a $12,000 office furniture purchase with a 5-year useful life and no salvage value.
Step 1: Ensure your release template exists
Your organization should have a release template called "Furniture" configured with:
Step 2: Enter the bill
Navigate to Spend management → Bills and click + Create bill. On the bill line item:
| Field | Value |
|---|---|
| Description | Office furniture |
| Amount | $12,000 |
| GL Account | 500500 - Office Furniture (expense account) |
| Release Template | Furniture |
What happens when you post this bill:
The accounting entries:
Initial posting (when bill is posted):
Monthly release (repeated 60 times):
Key concept: On the bill line, you select the expense account (500500) as the GL account. The release template's balance sheet account (800800) is where Light automatically parks the full amount. The engine then releases from the balance sheet account to your expense account over the 60-month period — you don't need to manually book to the asset account.
View active releases in the Accounting > Releases dashboard (in Platform section). This shows all pending and completed releases, their progress, and book values. You can:
Good to know: Once a release has posted entries, you cannot delete it. Instead, create an adjustment release to correct errors or changes.
For multinational organizations, release templates are defined at the company level but can be customized per entity. This allows:
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