Prepayments Search and Adjustment

Search prepayments, create prepayment adjustments, and dispose of future prepayments

SEPTEMBER 9, 2024

Overview

The Prepayment function in Accountability facilitates the process of spreading the cost of prepaid expenses through an amortization schedule within a supplier invoice or journal. 

The Prepayment Search and Adjustment page provides a centralized view of all prepayment records without running the Prepayments Reconciliation report and supports the following prepayment adjustment scenarios: 

Create a Prepayment schedule outside the source invoice or journal

This expanded functionality supports the following scenarios:

• The accounting month that a supplier invoice was posted to is closed, preventing the creation of a prepayment amortization schedule from the source invoice. 
• The prepayment adjustment does not have a corresponding supplier invoice or journal, i.e. you want to simply record a prepayment and amortize that amount. 

Dispose of an existing prepayment 

Let's say you have created a prepayment in month 05/2023 amortized across 24 months from 06/2023 to 06/2025. However, part of the way, you might want to dispose of the remaining prepayment balance for 08/2024.  This expanded functionality will:

• Create a "disposal" of the prepayment record in 08/2024:  Credit prepayments GL expense account, debit prepayments GL control account for the remaining net balance of that prepayment as at the start of the month 08/2024.
• Remove the future prepayment amortization records and journal postings in the months from 08/2024 through 06/2025.

Steps

1. Navigate to Accounting>General Ledger>Prepayments. 
2. The Search Prepayments page is displayed, with a list of all prepayment records based on the selected filters.  Prepayments created from a supplier invoice or linked to a journal have the Supplier Invoice No. or Journal No. columns populated, respectively. 
   
3. Click on the Prepayment ID hyperlink to view the prepayment amortization schedule for the selected transaction.  

4.  To create a stand-alone Prepayment, click on the  Create Adjustment button on the top-right of the page and populate the following pop-up form as follows: 

1. 1. Enter a Description. If this is for a supplier invoice posted to a closed accounting period,  reference the invoice number. 
   2. Choose the Expense GL Account. Make sure this is mapped to a Prepayments Control Account.
   3. The transaction Date defaults to today's date.  This date drives the Accounting Year and Accounting Month.  Override as needed as long as the accounting period is open. 
   4. Choose the Office and enter the prepayment Amount. 
   5. Click Save. The Prepayment schedule page is displayed. Enter the number of months to amortize and click the Go arrow.  The system will equally distribute the total amount across the number of months selected.  Update the amortization dates and amounts as needed and click Post when you're done.
      

5.  To create a disposal, select a prepayment record and click the Create Disposal button on the top right of the page.  The pop-up form below is displayed.  Select the starting Accounting Month/Year you'd like to dispose of.  The system will display the remaining amount from that date until the end of the current schedule.  Click Save.