How to amortise pre paid expenses

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Posted on by Paul_199

What are the best methods to amortise an expenses over future periods?

For example a payment for insurance for 12 months of insurance.

We pay the insurance 2 month in arrears so need to recognise 2/12 of the total expense now in the Expense Main Account in the general ledger, and schedule the remaining 10 months to load to the General Ledger expense main account over the next 10 months drawing down from a balance sheet prepayment Main Account in the General Ledger.

Thanks

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Anton Venter 20,303 Super User 2025 Season 2 on at

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RE: How to amortise pre paid expenses

Hi Paul,

To be honest I think you will need a customization to do exactly what you are describing because I don't think there's functionality in the standard application that can do that as described.

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Paul_199 30 on at

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RE: How to amortise pre paid expenses

Hi Anton,

I read information on Learn for D365

Configure ledger allocations and accruals in Dynamics 365 Finance

and this explained how to do what I needed from standard functionality

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Magno Pereira 2,435 Moderator on at

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RE: How to amortise pre paid expenses

Have you explored the Accrual schemes and Ledger accruals? It might be worth considering them for your situation.

learn.microsoft.com/.../accruals-overview

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Gaurangkumar Jani 4,514 User Group Leader on at

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RE: How to amortise pre paid expenses

Hi Paul_199

Have you explored "Subscription Billing" module?

Please have a look to this functionality, this will allow you to differed expense forceable future based on your requirement.

Link of docs : learn.microsoft.com/.../sb-deferrals

Please let us know if this helps.

Thanks,

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saurabh bharti 15,039 Moderator on at

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RE: How to amortise pre paid expenses

Hi,

Please see below article :

exploredynamics365.home.blog/.../

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Paul_199 30 on at

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RE: How to amortise pre paid expenses

learn.microsoft.com/.../

This is where I found the answer to how to post prepayments and accruals in D365 Financials

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