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Prepaid Expense Amortization

Amortize prepaid expenses (rent, insurance, tax, interest) over time.

Creating a Prepayment Entry​

  1. Accounts → Prepayment Amortization → Add Prepayment
  2. Select category (Rent, Interest, Insurance, Tax, Other)
  3. Set utilization start date, amount, coverage period
  4. A summary panel shows monthly amortization and prorated first period
  5. Submit — the system generates an amortization schedule and posts the initial journals

Actions​

  • View Schedule: See each period's start/end dates, amount, prorata factor, and accrued status
  • Edit: Modify name and description
  • Close Early: Write off the remaining unamortized balance in one journal entry
  • Adjust Term: Extend or shorten the coverage period (regenerates schedule)

Nightly Automation​

The PrepaymentAmortizationJob runs daily, posting amortization expense for each active entry's due period.