Add Prepayment Schedule

A prepayment schedule is used to schedule the posting of income or expenditure from an initial value recorded to a Balance Sheet account to be spread over a selected time period (months, quarterly etc.) to appropriate income or expenditure accounts.

Usually only relevant when accrual accounting (Income and Expenditure reporting for Not-for Profit organisations) is adopted; the balance sheet accounts used must be the system accounts

Accruals and Deferred Income
Items which owed or potentially owed by the organisation to third parties and are classed as account type - Current Liabilities.
Prepayments and Accrued Income
Items which third parties owe or potentially owe to the organisation and are classed as account type - Current Debtors

Sub-accounts of these two may also be used. Note if the accounts are not currently in the organisation's chart of accounts add from the list of standard accounts.

Accounts - Add Standard Accounts

Sub-accounts can be created via Add a Custom Accounts being sure that any account created is a sub-account either of Accruals and Deferred Income or Prepayments and Accrued Income

From the original document a prepayment schedule is created by clicking Add Prepayment Schedule.

This screen is used to set up the details for a new schedule or view the details of an existing one.

If the new prepayment schedule is being created from a Supplier Bill refer to the section below.

A New Prepayment Schedule (not from a Supplier Bill)

Reference
Any reference from the originating document is carried forward to the schedule.
Charge to Account
Select an appropriate and relevant income or expense account for the schedule to journal to. The appropriate balance sheet account is determined by the originating document, either
  • Accruals and Deferred Income Account or
  • Prepayments and Accrued Income Account
Fund, Branch or Activity
For a Not-for-Profit Organisation select the appropriate Fund and (if being used) Activity. For other organisations select a Branch and or activity if the analysis is being used.
Memo
Add memorandum information as required
Start date
Select the start date to record the first journal
Count
Enter the number of journals to be posted
Interval
Select the interval of each posting: -
  • 4 Weekly
  • Monthly
  • Quarterly
  • Half Yearly

Click SUBMIT to complete. Note any journals dated in history (prior to today's date) are posted immediately.

A New Prepayment Schedule from a Supplier Bill

Where a schedule is being created from a supplier bill an option is available to generate the recording of payment transactions to a bank account. So that at the same time as a Journal is posted to record the expense; a payment document is allocated to the bill on the supplier account and shown on the bank account for reconciliation when the actual cash payment is made.

Reference
Any reference from the originating document is carried forward to the schedule.
Charge to Account
Select an appropriate and relevant income or expense account for the schedule to journal to. The appropriate balance sheet account is determined by the originating document, either
  • Accruals and Deferred Income Account or
  • Prepayments and Accrued Income Account
Fund, Branch or Activity
For a Not-for-Profit Organisation select the appropriate Fund and (if being used) Activity. For other organisations select a Branch and or activity if the analysis is being used.
Memo
Add memorandum information as required
Generate Payments Box
Tick the box and additional field(s) are presented
Payment Account
Select the appropriate bank account to record the payments
VAT rate
Will only display if the organisation is set as VAT registered. The choice for this field is dependent on the situation and the user is advised to seek professional advice if uncertain.
Start date
Select the start date to record the first journal and payment (if set)
Count
Enter the number of journals and payments (if set) to be posted
Interval
Select the interval of each posting: -
  • 4 Weekly
  • Monthly
  • Quarterly
  • Half Yearly

Open an existing prepayment schedule

The screen presents the list of scheduled journals each with the date for posting. Journals already recorded as shown as greyed-out.

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