- Confirm the GL Default setting for “Prepaid Expense Accounts” has been set appropriately. You can find this on the System homepage under GL Default List.
- On the Accounts Payable homepage, enter an AP Invoice and AP Invoice Items normally.
- Assign Expense GL Accounts to the AP Invoice Items.
- For each Prepaid Item on the Invoice, go to the item’s detail screen and click on the General Ledger tab.
- Set the “Prepaid Expense?” flag and enter the desired “Deferral Date”.
- Click Update. After Updating, the DR GL Account of the item is updated with the “Prepaid Account”, and the Deferred GL Account field is updated with the Expense Account.
- Close the Invoice Item and return to the Invoice Header.
- Click Update on the Invoice Header to update the Prepaid GL Account to the DR GL Acct.
- Post the AP invoice (and pay when desired).
- After the AP Invoice has been posted and/or paid, the “Transfer Prepaid Items” function can be utilized.
- 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.
Read more about How to Transfer Prepaid AP Invoice Items Manually here.
Read more about How to Transfer Prepaid AP Invoice Items in a Batch here.