Join us for this free, live session where we'll explain how to process prepayments and accruals both manually and using the automated options as part of your month end.
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Slides from this presentation:
Sage 50 Accounts - Prepayments and Accruals - 202212.pdf
Recent Q&A
| Question | Answer |
| Can we not post the whole payment of prepayment in prepayment? | Instead of adding the initial invoice to the rent nominal code, you could add it to prepayments instead as a shortcut. |
| Why don't you recommend using 'Recurring Items'? | This is one option but this is one way of keeping all of these together in one place and running as part of month end. |
| Thank you. Is it okay to use recurring items then? | If that is preferable to you - yes. Just remember to not select to post during month end routine to make sure you aren't double accounting. |
| Could this be used in a retail situation where you sell gift vouchers, which are then presented back to the shop to initiate a sale? | Prepayments are generally used to spread the cost of an invoice received (and paid) over the amount of months the invoice relates. Assuming you are selling gift vouchers, you would want the sale of these to be recorded in the month of sale, and not spread over a number of different accounting periods? It's normally to spread the cost of a payment across a period of time. |
| Can you future date the expenses like you did in this example? | Not using the wizard, but you can do this manually, open the manual prepayment and accrual article. |
| Can we use prepayments if we post one month payment but we pay 1-2 months in advance? | There needs to be a minimum of 2 months for the prepayments feature. |