In the corporate environment, expenses are the most common prepayments. These expenditures are paid in full in one accounting period for goods or services that will be consumed in a future period. The prepayment is reclassified as a normal expense when the asset is actually used or consumed. A...
the Prepayment rule will consider whether or not the product is an asset or liability (based on the account type attribute defined in dimension member management). If the product is an asset, then the Prepayments tab will be
When you do this, Payables reverses the prepayment so that it is no longer outstanding and so that you can no longer apply the prepayment to an invoice. The net effect is a debit to your cash (asset) account in the amount of the refund and a credit to the prepayment account in the ...
This prepayment is labelled as a normal expenditure once the company starts using the purchased asset. Prepayment by Taxpayers: Taxpayers unknowingly make prepayments of taxes as some of their pay-check is stuck. Self-employed individuals, for example, are required to make the advance payment of ...
The problem is that this money is showing up as an asset in the balance sheet. It fact, it is a liability to me any/all the projects are completed. I would like this to somehow be reflected on this balance sheet so that it doesn't loo...
The problem is that this money is showing up as an asset in the balance sheet. It fact, it is a liability to me any/all the projects are completed. I would like this to somehow be reflected on this balance sheet so that it doesn't look like I...
10.Accrual and prepayment Chapter 10. Accruals and prepayments
A prepayment is a financial tool for people who intend to make the most of a payment obligation. In simple terms, prepayment is the early payment of the future liability. For instance, an insurer may choose to prepay the insurance premium, which will become due next year, or a firm may...
For the actual bank account where the retainers land, that bank account would have to be an asset (bank), otherwise, the debit and credit can't balance out (money goes into the bank account as a debit to the bank and then you credit the lia...