Prepayment - recurring

Updated May 18, 2018

Hi All,

I have a scenario: A vendor is providing a magazine to us, for a year we have to pay $1000. how to make entry every month? is it recurring or can we use any other process other than recurring? I am using 4.7 version. I heard something like prepayment etc.. Pls could anyone guide me what is the procedure to handle this kind of scenarios? Thanks in advace,

Comments

30 Jun 2010 10:03 am rekha
Why cant you put the po for 12 month with same money *12 times? if they dont like it ask them to make a journal credit vendor account and debit Balance sheet Pre-payment account. howeve they have to do accrual to show this every month.

Regards

25 Aug 2010 11:43 am rekha
Hi,

There is a concept called accrual engine.

There you can do intial posting of say 1200$ for a year at that time the prepaid exp will get posted and then run periodic posting run in which the expense will get automatically posted to expense account (100$ p.m)

Also there is other option of using BDC for T-code FBS1.

Thanks