Office - Prepaid Invoices

Table of Contents


Prepaid invoices are designed to allow the club to set up a large invoice paid over time.

Required Permissions

  • Enter Vendor Invoices (V)

  • Manage Vendor Invoices (V, E, C, D)

  • Approve Vendor Invoice Batches (V, E, C, D)

  • Approve Journal Entry Batches (V, E, C, D)

Creating a Prepaid Invoice

  1. Enter invoice like you normally would but for the General Ledger Account Number choose a Prepaid Account for the total invoice and enter dollars to match Invoice Amount.

  2. Click the Prepaid box

  3. Click the now populated Configure button to pull up the configure window.

Configure Screen

  • Expense Account: Enter the general ledger account number for where the expense should be entered.

  • Expense $ - Enter the amount of current month expense you want to recognize in this batch (for example, if spreading expense over full year enter 1/12th total invoice for this month’s payment).

  • Frequency – How often do you want to recognize future expense (Default of monthly however if a deposit for future entertainment may select Annual or Custom).

  • # of Periods – How many remaining periods to spread expense over.

  • Start Month/Year – The start of when the first scheduled expense should be recognized.

  • Schedule - The amortization of the future expenses.  The amounts can be overridden if you do not want to spread expense evenly over future periods.

Please Note: Schedule Amount + Expense $ must balance to the Invoice total.

Save & Close

Finish the invoice like normal, save, and post the batch. Once this is complete the system will create the future Journal Entry (GJ) batches to be posted at the correct time.

Posting the Journal Entry

  1. Navigate to General Ledger.

  2. Select Approve Journal Entry Batches from the left hand navigation.

  3. Find the entry related to the next payment.

  4. Double click to post the batch.

Please Note: If they extend beyond the current accounting year, the following Budget Year will need to be created (GL/Budgets) and future periods ‘Closed’ boxes unchecked. To learn more about building new periods and opening them click here.

Best Practices

  • When building the # of Periods make sure to subtract the first period entered in the expense $ field.

  • Make sure the general ledger codes look correct in both the vendor invoice batch (AP) and subsequently the Journal Entry (GJ) batch before posting.


  1. Can I have more than one expense account on these invoices?

    1. No, only one expense line can be on a prepaid invoice.

  2. How many periods should I create when configuring the invoice?

    1. as many as you need minus one for the period you are currently in.

  3. What should I set my start month to?

    1. Any period after the current one.