Entering Prepaid AP Invoice Items

One-Time Setup

  1. Confirm the GL Default setting for “Prepaid Expense Accounts” has been set appropriately. 
    1. You can find this on the System homepage under GL Default List.

Entering a Pre-Paid Invoice

  1. On the Accounts Payable homepage, enter an AP Invoice and AP Invoice Items normally.
  2. Assign regular Expense GL Accounts to the AP Invoice Items.
  3. If this is a Prepaid Item that will be amortized over several periods, you must enter one line item per amortized period.  For example, if you paid $1200 in December for next calendar year's insurance, then you would create 12 line items for $100 each for every amortized month. 
  4. For each Prepaid Item on the Invoice, go to the item’s detail screen and click on the General Ledger tab.
    1. Set the “Prepaid Expense?” flag and enter the desired “Deferral Date”.
    2. Click Update.  After Updating:
      1. The DR GL Account of the item is updated with the “Prepaid Account”
      2. The Deferred GL Account field is updated with the Expense Account
  5. Close the Invoice Item and return to the Invoice Header.
  6. Click Update on the Invoice Header to update the Prepaid GL Account to the DR GL Acct.
  7. Post the AP invoice (and pay when desired).
  8. After the AP Invoice has been posted and/or paid, the “Transfer Prepaid Items” function can be utilized.

Finding Deferred/Prepaid AP Items

  1. To access a report of AP Items originally posted to deferred/prepaid expense accounts and that are designated for subsequent posting to actual expense accounts, run the Deferred/Prepaid AP Items query located on the Accounts Payable home page.

Transferring Prepaid AP Invoice Items - Manually

Transferring Prepaid AP Invoice Items - Batch Process