You can set up your environment to use the deferred tax functionality.

To enable this functionality, first, from the Role Center, navigate to Setup → Lease Setup. In the Lease Setup page, under the Accounting Settings tab, enable the Use Deferred Tax option and also fill in the Deferred Tax (%) field.

In the Lease Categories page, fill in which accounts should be used for Deferred Tax Asset and Deferred Tax Asset Exp. postings for each category, otherwise, the leases won't post during monthly processing with this functionality enabled.

Once the setup is complete, you can proceed with posting to the General Ledger. Below is an example of lease activation and a monthly posting with Deferred Tax functionality enabled.