Yearly Zoom subscription, but overlaps two accounting periods

Accounting
1

Hi,

I purchased a yearly Zoom subscription halfway through an accounting year. So it covers part of the 1st accounting year, but also a fraction of the 2nd accounting year.

Is there anyway Quickfile can assign the correct portion of expense to the first accounting year, and also to the second accounting year?

This is a limited company, Zoom subscription was paid using the company bank account.

2

You will have to journal it as prepayment method

3

Thank you for the suggestion. So if I understand it correctly:-

  1. Create a normal purchase for the full amount of the Zoom Subscription.

  2. Create a Journal entry dated the last day of the 1st accounting year,
    Credit “subscriptions”, and Debit “Prepayments”, with the portion which goes into the second accounting year

  3. Set the “auto-reversal” date on this journal entry to be the 1st day of the second accounting period. And this should put the correct amount in the second year.

Would that be the correct way to do things?

Do you offer a consultation service?

1 Like
4

That is spot on correct

2 Likes
5

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