Automatic creation of Amortization entries for Pre Paids
Summary
Automatic creation of Amortization entries for Pre PaidsContent
Our business is buyer of large number of intangible products such as software licenses, shared license agreements where we pay in advance. And amortize these pre paid assets in straight line over several monthly periods.
Today our users maintain list of these pre paid assets and on monthly basis upload to GL the amortization journal entries.
They will like a utility in the system to generate this entry on monthly basis.
E.g Paid $36,000 to buy software licenses upfront for 3 year. Will need to amortize $1,000 (36,000/36) each month and offset the pre paid asset.
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