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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Reconcile Prepaid Expe...
Small and medium business | Business Central, N...
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Reconcile Prepaid Expenses

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Posted on by FL2020SFM 25

Hello,

We recently switched over to Business Central from Dynamics SL. We used to reconcile our prepaid expenses in excel and made sure it matched the GL account after all entries were posted. In BC, we put in all our prepaid expenses as recurring journal entries because had we used the deferral templates, we would have lost the description of the expenses when they are worked off each month. Is there a way to do a reconciliation in BC so that we can avoid using an excel spreadsheet?

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  • Brian Wick Profile Picture
    Brian Wick on at

    Hello,

    Where are you actually posting these entries from?  Are you posting invoices with a Deferral Code defined, like from Purchasing or Sales?  Or are you posting these just as recurring journals?  If you could provide more info as to how these entries are being posted and entered into the system, that will help me (or the Community) determine if there is a report that can help with reconciling.

  • FL2020SFM Profile Picture
    FL2020SFM 25 on at

    Hi Brian,

    We have recurring entries setup to work off(credit prepaid) the prepaid expense and purchase invoices are used to put items into prepaid expense(debit prepaid).

    I actually found that I can change the description during the purchase invoice, but get errors due to future accounting periods are closed. We do not want to open up the periods as we feel that may open the door for posting errors of other items. Still searching for a solution to this as well.

    Thanks in advance for your insight!

    Francesco

  • Brian Wick Profile Picture
    Brian Wick on at

    Hi Francesco,

    We have limited options in NAV/BC to do this.  It looks like you at attempting some sort of amortization schedule from the looks of it.  NAV/BC doesn't have a true Amortization subsidiary ledger.  We have Fixed Assets as subledger with an amortization schedule.  Maybe you could create a custom Fixed Assets Number range to record the Prepayment Expense and complete a monthly Depreciation/Amortization of these Prepaid Expenses.  By using a separate range of FA No.'s, you could segregate out the Prepaids from the regular Fixed Assets.  Using an option like this could muddy the waters fast depending on how many of these prepaid expenses you need to record.  If your primary goal is to look for reporting and scheduling of Prepaid expense recognition, I believe you require some sort of subledger like Fixed Assets.  Unfortunately we don't have a true Amortization ledger in NAV/BC, only the FA ledger does.

    Have you consulted your partner for potential solutions or checked to see if there could be an extension/3rd party out there that might be able to accomplish what you are seeking?  Hopefully the community will respond with their thoughts too.  Thanks.

  • Verified answer
    FL2020SFM Profile Picture
    FL2020SFM 25 on at

    We have spent a lot of time searching the web and were unable to find something. We did however create our own solution. I created an account schedule that has the beginning balance, additions(debit entries), expense entries(credits) and show the ending balance. From there we will utilize the General Ledger Entries window to print out the info we need to reconcile. It may not be the best option, but it will do as we want to abandon the excel sheet we were originally using.

    Thanks again for taking the time to reply.

    Thanks,

    Francesco

  • Brian Wick Profile Picture
    Brian Wick on at

    Thanks Francesco for sharing your solution w/the community.  Enjoy your day!

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