Last year I came for adsvice on prepayments and was told they go into the journals.
so I entered as advised
7100 rent 379.17cr
1103 Prepayment 379.17dr
We were invoiced in feb 2016 for 6 months.
I do not know how to return this to its correct location for 16/17.
Is it a case of entering the total as an invoice recieved in this year and tagging to the prepayment account?
Im not sure how its done?
Wondering if I have placed this in the wrong section
Hi @shepherdess
Generally with prepayments you would enter these against the specific client or supplier as outlined in this post, rather than using a journal. This would also then make it available to pay down a future invoice.
When you made the prepayment, how did you tag the bank transaction?
I’ve also just come across your other post, which I’ve now removed from the main forum seems it’s active here.
I entered it as Paid in full to the invoice
then :
7100 rent 379.17cr
1103 Prepayment 379.17dr
i think ive really messed that up right…
So you paid six months of rent in feb 16 but you want to apportion it to the right accounting years (e.g. 2 months to 15-16 and 4 months to 16-17)?
If so, I would do it like this (assuming 31st March year end):
This means that at your 15-16 year end you’d have two months rent on your 15-16 P&L and the remaining four months on your balance sheet at 31st March under prepayments, then on 1st April the prepayment moves back to P&L for 16-17.
So it sounds like all you need to do is reverse the journal you already created at the end of your 15-16 year.
2015-2016 is locked.
whatever I need to do to fix it must be done in 16-17.
at the end of Feb 2016… we paid the invoice that covered march, April, may, June, July, August.
we make up to April 5th (sole trader)
so 2015/16 I entered a journal : on 5th April 2016
7100 rent 379.17cr
1103 Prepayment 379.17dr
this period is locked. it cannot be edited.
The account shows 2016-17 with 379.17 in prepayment.
and rent of the same.
when I try to move the prepayment back to the rent I get double the rent…
This time of year is always super hard as I have a child with issues who cries all day so just the little bit of confusion puts me on the edge. I literally can’t think straight because of his stress and cannot get my head around putting it right.
I suspect this is because of the original invoice being created and paid in full.
Why is the period locked? Is it a year end lock, or a VAT lock?
That is odd, so what exactly does your “rent” nominal show between Feb 16 and 5th April 17? From what you described earlier it sounds to me like you should have:
Where is the 379.17 debit coming from for the 16-17 year?
The invoice given in feb was dated for March
27/04/2016 Storage 50.00 GBP
23/09/2016Storage 455.00 GBP
14/03/2017 Storage 454.98 GBP
a journal on 05/04/2015
rent cr £379.17
prepayments dr £379.17
Year end journal 05/04/2016 rent cr £877.83
The next invoice came in 23/09/2016
I tried entering a money owed for £379.17 to straighten things out which I have deleted.
(thank you so much for your help…Im sat here with ear plugs in at the moment because everyone watching various devices and the other half keeps interrupting to ask me to watch conspiracy videos on feminism… which is why I dont send this to the accountant…He doesnt allow it :/)
Do you really mean 2015 here (the last day of the previous year) or 16?
OK, so at this point the debit balance on rent should be just the value of that 23/09 purchase.
… so that shouldn’t affect anything.
It sounds to me like you should just need to enter the reverse journal (dated 6th April 2016, £379.17 credit prepayments and debit rent) to straighten things out, and leave your rent account at £379.17 plus the value of the 23/09 purchase.
No, sorry…that should be 05/04/2016
Makes me seem feel incompetent making such stupid errors when asking for help ( weve moved on to hidden messages in news reports…)
Yes…that invoice comes in and is paid straight away and covers the following months…
Im starting to think that I just got too stressed and over complicated things…
After doing so, the rent shows as £637.15 after entering that journal - I feel like a proper plank.
I think when seeing the “red” in the Chart of nominals I started to think I was doubling up what I owed.
Id honestly buy you at least 2 beers…I might buy myself a few too…
Excellent. You may have to do the same trick again if you’ve paid another 6 months in Feb/March 17 but it sounds like you’re most of the way there now.
I think next time round…i will make use of the auto reversal box I recently found…
I might also invest in some sound mufflers and get out the old AAT books and revisit a few things if i get 5 mins…
Thank you again for your help…I cant believe I made such a mess from doubting myself and getting stressed ( < that part is an outright fib…)
To be fair, I think that was only introduced some time in the middle of last year, so last time you were doing a year end it wouldn’t have been an option.
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