QB Issue Resolution:
Your customer wants to spread the expense of an item paid in a single amount (i.e. insurance premiums, Yellow Page bill, etc.) over a period of several months in order allocate expenses to the appropriate month.
Create an account to track the prepaid expense, generally an ‘other current asset’ account.
Click on Chart of Accounts, then Account, then New, (or Ctrl-N).
Under Other Account Type, select Other Current Asset, then Continue
Assign an account number (if used) and name (i.e. Prepaid Expenses).
Enter payment to vendor using the newly created Prepaid Expenses account on the Expense tab.
Create a memorized journal entry to allocate one month or quarter of the expense.
Click on Company, then Make General Journal Entries.
Enter appropriate date for the first period the expense actually belongs to. You can either enter your own entry number, or allow QuickBooks to auto-assign one.
Debit the expense account and credit Prepaid Expenses for the appropriate percentage of the total payment (1/6 if 6 months, ¼ if quarterly for a year). You can include an appropriate memo if you choose.
Enter Ctrl-M to memorize the transaction. Assign it a name (Umbrella Insurance), and choose Automatically Enter. Select how often you want the entry recorded and the date of the next transaction. Also indicate the number of remaining entries.
The entries will record according to the frequency you selected, reducing the Prepaid Expenses account each period. The balance in the Prepaid Expenses account should be zero at the end of the coverage period.
If the user has multiple prepaids to track, it is suggested that they create sub-accounts of the Prepaid Expenses account in order to track each separately.
You can also review other available QuickBooks support options for additional guidance.
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Resolution for Issue 'Record and Allocate Prepaid Expenses.' available: Yes (Solved).
Source: Intuit Community forum.
Record and Allocate Prepaid Expenses.: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for quickbooks mac faq
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