Prepaid reconciliation

Prepaid reconciliation can be initiated from Payables or from Reconciliation Management. Amortization schedules are created for each invoice and expensed from Reconciliation Management for each period.

This list shows the tabs that are available:

• Ledger Amount: Shows the ledger amount when an accrual reconciliation account for Prepaid is scheduled for the period.

  The total of all prepaid invoices is displayed in the Reconciliation Details field or Amortization Details field and is compared against the ledger amount.

  Click the Amortizations button to view prepaid invoices that are set up to be amortized for the account that you are reconciling.

  Right-click the Exclude Amortization button to manually exclude out-of-balance reconciliations so that the proceeding reconciliations remain in balance.

  Note: For periods where the amortization was recorded outside of the Reconciliation Management application, you can use the Exclude Amortization action so that the distributions are not created or included in the out-of-balance calculation.
• Reconciliation Details: Use to create reconciling details for the period.
• Reconciling Items: Use to create any reconciling differences for the period. Reconciling items can be carried forward to future periods or can be created for a period range.
• Amortization Details: Shows all of the amortization details based on the amortization schedules. The amortization details are automatically created when the period reconciliation is created.
  When you run the Create Amortization Distributions action for the period, the amortization distributions are displayed on the Amortization Distributions tab. These distributions are based on the defined amortization schedules for each prepaid invoice.

  Note: An approval code is required if the total distribution amount is greater than the Accounting Entity approval amount.

  See Creating amortization schedule and distributions for prepaid reconciliation.

• Ledger Transactions: Shows the general ledger transactions that are posted for that period. You can also create reconciling items, distributions, and amortizations from this tab.
• Distributions: Use to adjust journal entries, for example, a write off of an item and amount.
• Comments: Optionally, provide comments.