Add Prepaid Expense Asset Subsidiary
These steps explain how to add a prepaid asset expense subsidiary. A prepaid expense is an expense that is being paid in advance and expended on your credit union books over a period of time.
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An example would be league dues or a maintenance contract, which would be paid up front with the benefit received throughout the year.
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Launch Tool #1772 Work/View Subsidiaries.
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Click Add.
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From the Item type dropdown, choose Prepaid assets.
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Click Continue.
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In the Item # field, type a new item number or leave the auto-populated number.
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Enter the Purchase date.
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In the Start date field, input the date you want the expense to start.
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Enter a description of the prepaid expense in the Description field.
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Enter the Invoice/Total cost.
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In the Category field, input a category code or use the magnifying glass icon to choose one from the list.
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If category needed is not listed, one can be created.
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If this is not applicable, you may skip this field.
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Skip the Amortization to date field.
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Select a Branch.
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In the Month remaining field, enter the number of months to amortize.
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If applicable, select a Department code.
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Skip the Monthly expense field.
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If applicable, select a Vendor code.
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If a Vendor code is selected, enter a Vendor description.
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In the Life (months) field, enter the same number as the Month remaining field.
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Select an Asset G/L # and an Expense G/L #.
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If applicable, check the box next to Create journal entry.
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Click Comments to add any comments, if applicable.
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If applicable, enter a PO/ID # and/or an Invoice #.
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Select Add/Update.
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On the confirmation popup, click Add/Update again.
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Learn More
Learn more about prepaid asset expense subsidiaries.