How to process a one month prepayment over the year end

Answer

To process a one month prepayment over the year end you must process it manually.

Sage 50 Accounts

If you have posted an invoice from a supplier where the value belongs in the next financial year,

you should record this by posting manual journal entries. To do this, please follow the steps below:

To enable reversing journals, open the Settings menu, choose Company Preferences then click Parameters.

From the Others area, select Enable Reversing Journals.

Tip: When selected a tick appears in the box.

To accept the change and close the Company Preferences window, click OK.

Company module >Tasks pane > New Journal.

In the Nominal Ledger Journal window, enter a reference and date for the journal, this date should be in the final month of the financial year.

Enter the journal details required, for example, to post a £200 rent prepayment, post the following:

 

N/C Name Dept Details T/C Debit Credit
1103 Prepayments Department Txt to identify the transaction T9 200.00
7100 Rent Department Txt to identify the transaction T9 200.00

 

Note: This example assumes the default nominal codes.

Select the Reverse Journals check-box. A tick appears in the box.

From the Reversing Data box, enter or select the required date for the reverse journal. For example, the first day of the new financial year.

To post the prepayment journal and the reversing journals, click Save.

Sage Accounts v12 and below

If you have posted an invoice from a supplier where the value belongs in the next financial year, you should record this by posting manual journal entries. To do this, please follow the steps below:

Post a journal entry to transfer the value of the invoice to the Prepayments nominal code, dated in your current financial year, for example:

 

N/C Name Dept Details T/C Debit Credit
1103 Prepayments Department Advance Expense T9 5000.00
7100 Rent Department Advance Expense T9 5000.00

When you are ready, run the Year End option.

After the Year End option has been completed, post a journal entry to move the value back into the profit and loss nominal code, this time with a date in the new financial year, for example:

N/C Name Dept Details T/C Debit Credit
7010 Rent Department Advance Expense T9 5000.00
1103 Prepayments Department Advance Expense T9 5000.00

 

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