Prepaid Expense Amortization for Sage MAS 500

Automate Prepaid Expense Amortization
Prepaid Expenses can be a significant accounting headache for a company’s finance department. Managing and tracking it with spreadsheets can be a significant resource drain, absorbing time and money, and exposing a company to errors resulting in incorrect reporting of expenses.

With Prepaid Expense for MAS 500, managing expense amortization is an automated, efficient process. The Prepaid Expense module tracks expenses paid in advance of the delivery of maintenance, insurance or other prepaid services, and enables the user to manage and amortize expenses through a flexible, easy to use interface. Expense is amortized and posted automatically to the General Ledger module within MAS 500.

Integration with both Purchase Order and Accounts Payable provides for initiating a new schedule when the purchase transaction is entered, including starting with a Requisition. Recurring Voucher functionality provides for recreating a schedule and prepaid schedule for repeat purchases automatically.

Prepaid Expense Schedule
Prepaid Expense Schedules can be established during PO Requisition Entry, Purchase Order Entry and AP Voucher Entry. When a Prepaid Expense Schedule is created, the user provides begin and end dates, the total amount, the number of periods the prepaid will be amortized and the amount to amortize each period. Multiple Prepaid Expense schedules can be associated with a single PO Requisition, PO or Voucher.

Prepaid Schedule Types
An unlimited number of Prepaid Expense Types can be defined, each with its own set of default asset and expense accounts. When a Prepaid Expense Schedule is entered, the Prepaid Expense Type chosen will default the asset and expense accounts automatically.

Accounts Payable Integration
Establishing new Schedules is done as Vendor Invoices are entered. If a user needs to setup a schedule subsequent to posting vouchers, the ability to define a schedule for a posted Voucher is provided through View/Edit Vouchers.

Recurring Vouchers
Schedules can be associated with Recurring Vouchers. Each time a Recurring Voucher is generated, one or more new contracts are generated as well, which can be edited and are posted with the Recurring Voucher.

Purchase Order and Requisition Integration
Setting up Prepaid Expense schedules can be done as PO’s or PO Requisitions are entered. Multiple Prepaid Schedules can be entered for a Requisition/PO and are created in a ‘Pending’ status. The Prepaid Expense Schedules are tied to specific Requisition Lines. When a PO is created for the Requisition, the Prepaid Schedule records are updated with the PO Number and PO Line Number. When a Voucher is created for a Purchase Order the Prepaid Schedule(s) status is updated and can be reviewed and edited in the Voucher batch prior to posting. The Prepaid Expense Schedule(s) become active when the Voucher is posted.

Inquiries and Reports
Included are flexible Inquiry and Reporting options that allow the user to report on anticipated expenses by period, schedule type, vendor, etc.

Prepaid Expense Amortization
Prepaid Expense Amortization is the automated process for calculating and generating the portion of Prepaid Expense that can be recognized as Expense in the current period. Initiating Prepaid Expense Amortization is an interactive process allowing the user to generate and post the results, or preview and adjust amounts before generating and posting. The Prepaid Expense Amortization process automatically recognizes defined amounts and posts them to the appropriate general ledger accounts.