Prepaid schedule
The plan that releases a prepaid amount to expense evenly over its months, posting an adjusting entry each period.
In Solo Superstars
Set the total, start month and number of months on the prepaid; each close posts that month’s share. Editing the schedule adjusts future months only.
Example
1,200 over 12 months from January: 100 each month; by June 600 expensed, 600 still prepaid.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- amortization schedule (prepaid)
Related
- Prepaid expense — Something you paid for ahead of time, like annual insurance. Sits as an asset and is released to expense month by month.
- 1400 Prepaid Expenses — Payments made in advance for something you will use later: annual insurance, a year of software, prepaid rent. An asset released to expense month by month.
- Adjusting entry — A journal entry made at period end to fix timing: an accrual, a prepaid release, depreciation. Not tied to a bill or invoice.
- Monthly close — Declaring a month finished: everything categorized, statements reconciled, then locked so nothing older can change.