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
    Specify the period range for the amortization.
    Catch Up Period
    Optionally, specify a catch up period if the amortization started prior to the period being reconciled.
    Note: A catch up period is where the accumulated amount for the proper periods is posted in the general ledger.
    Period Term
    Specify a period term for the amortization.
    Amortization Expense
    Specify either the GL account information or the Allocation Code. Specify a Distribution Description that is the default value for all of the distribution journal entries created for this amortization.
  6. Click Save.
  7. 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.

  8. 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.
  9. Click Save.
  10. 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.

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

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

  13. 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.
    Note: Optionally, for the Reconciliation Management Group, select the Enforce Reconciler Cannot Be Approver check box to strengthen the approval process. If the person releasing the distribution is also trying to approve the transaction, an error message is displayed.
    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.
    When you open a distribution, the Approval Information tab shows this information:
    • Approval Progress - The level and status of approval.
    • Reject History - The date, reason code, commenter, and comment if the distribution is rejected.