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Hi
Nikki is right in presenting a summary of the scenario since the original
post does not clearly state the scheme of accounting entries.
However, would not the (*) prepaid rental income invoices involve a
customer and not a vendor? In general, we collect rent income from
customers, right ? Or am I getting it wrong?
Regards
VidhyaDhar
| | | ---------------Original Message---------------
From: Nikki Klein
Sent: Wednesday, October 19, 2011 5:19 PM
Subject: Prepaid Expenses Amortized Per Month
Hi Nely
If I understood your scenario correctly you want to 1) post a vendor invoice in Oct 2011 where you CR Vendor and DR Prepaid Income for the full amount; and then 2) in each subsequent period you want to post a journal entry that will CR Prepaid Income and DR Income with the period value (1/12 of the total for the year)?
I would set up a recurring document for the second part; and yes, you could use multiple different accounts in that recurring document. So long as the whole thing balances to zero.
Nikki |
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