Can someone help me to confirme if what I have done is correct?
I have an invoice for Alarm maintenance dated first of Novemver 11 for £526.40.Invoice is for a full year and payment was made in full in December 11. The business year end is the 31 of january 2012
I have charged the full amount of the invoice to n/c 1103 (Prepayment account) and I am doing 12 monthly journals :
Dr 7805 Alarm maintenance (P&L) £43.86
Cr 1103 prepayment Account (Balance Sheet) £43.86
Thank you
Stef
-- Edited by Stef on Sunday 22nd of January 2012 03:49:14 PM
Hi We are not Vat registered so every invoice is entered as one amount. MarkS that is the only way I know how to do it, would you be able to explain your way to me better. I use sage instant account.
Look at the help option for prepayments and will explain how you set up prepayments.
Basically it is in the nominal/company module. There is an icon for prepayment. Set up the prepayment either manually or using the wizard and what SAGE does is prepay the expense in full in the first month and releases the expense to the p&l over the number of months selected. For the prepayment to work you would need to do the month end close down and select the prepayment option.
I can find the modules but it doesn' t give an option for prepayments. I have basic instant account maybe you have a different version. Is it correct to continue the way I was doing it before?
28/02/11 Prepayment 43.86 31/03/11 Prepayment 43.86 30/04/11 Preapyment 43.86 31/05/11 Prepayment 43.86 30/06/11 Prepayment 43.86 31/07/11 Preapyment 43.86 31/08/11 Preapyment 43.86 30/09/11 Preapyment 43.86 31/10/11 Prepayment 43.94 Our Financial year end 31/01/11 Does it look correct and do I have to do anythingelse
You are right, there is no prepayments module in Sage Instant and it has to be done manually.
It's difficult to see your journal as the formatting has gone to pot....lol What is the prepayment movement? What I do is post 11 month's value to the prepayments account leaving one month's value in the alarm maintenance account and then reverse this at the beginning of the next month. You then post 10 month's value to prepayments account leaving one month's value in the maintenance account and so on....
I am not sure I understand your way, I have imput the twelve journals already (DR alarm account and Cr prepayments account). I have posted the invoice to the alarm company with nominal code 1103 (prepayments). I have in the prepayment account on Dr side full amount of invoice and Cr side 12 monthly values. I have in the alarm maintenance account twelve entries in Dr side. Do I have to reverse the new financial year monthly journals? I am a little confused. Hope I am making sense.
