Hello, we have a prepaid insurance expense that I wanted to setup a amortization schedule to expense monthly over the life of the policy. Is this possible with the out of the box solution?
thanks
Hello, we have a prepaid insurance expense that I wanted to setup a amortization schedule to expense monthly over the life of the policy. Is this possible with the out of the box solution?
thanks
Hi
You can use out of the box functionality ‘Deferred expense’ feature to handle this scenario.
Here is how it works.
Note the amount is debited to ‘Prepaid insurance’ account linked to the deferral schedule and not above Insurance expense account
Click on ‘view deferrals’, it opens the schedule and reflects the date and amount that would be moved to ‘insurance expense’ account.
Run recognition for each period
Here is the document linked GL batch generated to recognize the expense for first period
Hope this helps,
Regards,
Thanks for the input
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