Company F operates in USA, state of IL.
1. Company F has been charged $180,000 for warranty charges related to products sold in prior years by company H (also USA company).
2. Company H allows extended monthly payments of $7,500 over 2 years.
3. Assume charge occurs in month 2 of Company F fiscal year.

Question: Can Company F recognize Warranty expense on monthly basis only ?
Ex: Warranty Expense $7,500
A/P Company H $7,500

The expense has already happened so it must be expensed in full in the accounts of F. If H is allowing a period of repayment then in essence, the substance of the transaction is a loan from H to F.

Ideally, an organisation would make a provision for this based on the likelihood of the warranty being called in. But if it hasn't created a provision, then it should be expensed to the P&l in the current financial year