Entering a payables vendor invoice as a Prepaid Expense

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Posted on by Robert Newman

Hello,

We pay many vendor invoices in advance of the period to which they apply. For example, we paid our July Health Insurance invoice in June. When we entered the July invoice in Dynamics, we posted it with a June transaction date and coded it to Prepaid Expenses. We then post a Manual Journal Entry with a July date to reclass the invoice from Prepaid to the actual expense account.

I am sure there is a much simpler, automated way to handle this but have not been able to find it. I know other programs have a feature whereby you post the invoice to Prepaid in June, indicate the expense account it needs to go to and it will automatically create the reversing entry.

Any help with this matter is greatly appreciated.

Thanks in advance,

Robert

Robert NewmanVice President, Finance & AccountingIndependent Film & Television Alliance 10850 Wilshire Blvd., 9th FloorLos Angeles, CA 90024-4321+1.310.446.1044 Phone+1.310.446.1600 Faxwww.ifta-online.orgwww.americanfilmmarket.com

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Ron Draganowski 1,575 on at

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Greetings, Robert.

Your issue is common. The module that handles this situation is called "Revenue/Expense Deferrals". Talk to your GP partner about it. Or if you're already licensed for it and if it's installed, then you should see the options to defer on the "Extras" menu of each transaction window, which in your case is probably the Payables Transaction Entry window.

Take care,

Ron Draganowski

www.dynamicsmn.com

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