We use cookies to help provide you with the best possible online experience.
By using this site, you agree that we may store and access cookies on your device. You can find out more and set your own preferences here.

How Do I Enter Prepayments And Accruals?

PREPAID  ITEMS

  1. Prepaid expenditure – for example Insurances paid for 12 months, where year end is March and insurance runs from 01/10. In this case Oct, Nov, Dec, Jan, Feb and March are “used up” but April to September are prepaid. (6 months).



     
  2. Prepaid income – for example rent received partly for the new year. This will be handled exactly the same way as Prepaid Expenditure except you will use a different Method. The dates will be similar.



    ACCRUED ITEMS

    a. Accrued Expenditure – for example allowing for electricity used but not yet billed.



    b. Accrued Income – for example (contract) work done but not yet billed, or rent due to you but paid to you in arrears. This will be handled exactly the same ways as Accrued Expenditure but will use a different Method.

    Some of the PREPAYMENTS could be entered at the time you receive the invoice.

    So when the Insurance is paid you can copy the transaction directly into the prepayment section and the system will divide the value by 12, putting 1/12 into the following 12 months.

    Click on Copy Xtion to get this box: