Creating amortization schedule and distributions for prepaid reconciliation

Amortization schedules are created for each invoice and expensed from Reconciliation Management for each period.
  1. Select Home.
  2. On the Open Reconciliations tab, open a prepaid account.
  3. Click Amortizations.
  4. Click Create.
  5. On the Main tab, specify the required information:
    Description
    Optionally, specify a distribution description.
    Transaction Date
    Specify the transaction date of the prepaid account.
    Start Period, End Period or Period Term
    Specify the period range for the amortization.
  6. On the Amortization Expense Account tab, specify an expense account or allocation code for the amortization.
  7. Click Save.
  8. Select Actions > Build Amortization Schedule.

    When the amortization schedule is built, the Amortization Details tab is available to view the amortization amount over a range of periods.

  9. On the Amortization Details tab, select a value:
    • End Amortization: End the amortization early and allocate the remaining amortization balance into the current period.
    • Extend Amortization: Change or extend the amortization and allocate the remaining balance evenly over the remaining periods.
    • Update Period Amount: Update the period amount of the amortization.
  10. Click Save.
  11. On the Period Reconciliations tab of the prepaid account, create a reconciliation period and open the period record.

    When a prepaid account reconciliation is scheduled for a period, the ledger amount from the back office is displayed. All previously-defined amortization records from the amortization schedule for this account is displayed on the Amortization Details tab.

  12. Verify that all details are accurate.
  13. Click the Create Amortization Distributions button.

    The Amortization Distributions tab shows the distributions that were generated from the previous tab.

  14. To release the distributions and post to the general ledger, click Release Distributions and specify the required information. If the total distribution amount is greater than the Accounting Entity approval amount, an approval code is required.
    These statuses are displayed on the Distributions tab:
    • Pending Approval - For distributions that are not yet approved.
    • Released - For distributions that are approved or did not require approval.