Maintaining A Prepaid Expense Subsidiary Record
These steps explain how to perform maintenance on a prepaid expense on the subsidiary record.
IMPORTANT: BE VERY CAREFUL WHEN MAKING ANY CHANGES ON THIS SCREEN! A correction made here will NOT affect the G/L or the transaction history of the subsidiary record; only the subsidiary record will be changed. Any changes that are necessary to adjust the G/L or transaction history must be made manually. Changes here DO NOT affect the running totals on the history screen for subsequent transactions. It may be necessary to perform maintenance to other history items to achieve accurate running totals.
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REMEMBER: Entries can be made to the subsidiary ledger but NOT posted to the General Ledger if the G/L is already correct.
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Launch Tool #1772 Work/View Subsidiaries.
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Highlight record to maintain, select Edit.
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Make edits where necessary.
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Invoice/Total Cost ( - ) Amortization to Date = Net Book Value
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Net Book Value ( / ) Months remaining = Monthly Expense
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Select Recalculate.
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The Recalculate option will ONLY recalculate the Monthly Expense, which is the Months Remaining ( / ) Net Book Value. Recalculate will NOT recalculate your Net Book Value for any changes made to the Invoice/Total Cost, nor the Amortization to Date.
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Verify that your subsidiary record is in balance. (Invoice/Total cost [ - ] Amortization to Date = Net Book Value)
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Enter Comments (if applicable).
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Select Add/Update.