The following steps contain everything you need to help you move an expense into a different accounting period using a one month prepayment or accrual.
One month prepayment
You may receive a purchase invoice from a supplier dated in one month, but the expense relates to a subsequent month. You must post the invoice with the correct date for VAT and ageing purposes, however you may want to account for the expense in the relevant month.
NOTE: This may also apply if you need to record the expense in the next financial year.
This may also apply if you need to record the expense in the next financial year.
To account for this you must post the purchase invoice as normal using the date of the invoice, then post a journal to move the expense from the relevant expense nominal code, into the Prepayments nominal code. Then to post the expense into the required month, reverse the journal using the relevant date.
NOTE: It is not possible to use the automatic Prepayments option for this.
- Post the purchase invoice as normal using the date of the invoice.
- Settings > Company Preferences > Parameters > select the Enable Reversing Journals check box > OK.
- Nominal codes > Journal entry.
- Enter the Reference and Posting Date.
TIP: If reversing the cost out of the current year in to the new year, enter the Posting Date as the last day of the current financial year.
- Complete the Journal Entry window as follows using the same date as the purchase invoice:
| N/C | Name | Details | TC | Debit | Credit |
| 1103 | Prepayment | Rent prepayment | T9 | Net amount of invoice | |
| Expense nominal code | For example rent | Rent Prepayment | T9 | | Net amount of invoice |
- Select the Reverse Journals check box > in the Reversing Date box enter the date you want to reverse the journal.
TIP: Enter the date that you want to record the expense.
- Save.
One month accrual
You may receive a purchase invoice from a supplier that is dated in one month but the expense relates to a previous month. You must post the invoice with the correct date for VAT and ageing purposes, however they may want to account for the expense in the relevant month.
NOTE: This may also apply if you need to record the expense in the previous financial year.
To account for this you must post the purchase invoice as normal using the date of the invoice, then post a journal to move the expense from the relevant expense nominal code, into the Accruals nominal code. Then to post the expense into the required month, reverse the journal using the required date.
NOTE: It is not possible to use the automatic Accrual option for this.
- Post the purchase invoice as normal using the date of the invoice.
- Nominal codes > Journal entry.
- Enter the Reference and Posting Date.
TIP: Enter the same date as the purchase invoice.
- Complete the Journal Entry window as follows:
| N/C | Name | Details | TC | Debit | Credit |
| 2109 | Accruals | Accrual reversal | T9 | Net amount of invoice | |
| Expense nominal code | For example: Rent | Accrual reversal | T9 | | Net amount of invoice |
- Save.
- Nominal codes > Journal entry.
- Enter the Reference and Posting Date.
TIP: Enter the date that you want to record the expense.
- Complete the Nominal Ledger Journals window as follows:
| N/C | Name | Details | TC | Debit | Credit |
| 2109 | Accrual | Rent Accrual | T9 | | Net amount of invoice |
| Expense nominal code* | For example rent | | T9 | Net amount of invoice | |
* If the expense relates to the previous financial year and the year end has already been run, use the Retained Earnings nominal code, 3200 by default. - Save.