Each month, confirm which bills are prepayments and the months each one covers. Open Journals > Month-End Close > Costs > Prepayments Journal and click Open on Select.

1. Clear the items to review

1. The banner at the top lists anything that needs a decision, such as a suggested prepayment to confirm.

2. When everything is done, the banner turns green and reads All items on this page are reviewed.

2. Check the months and filters

1. Set Months to display to include the month you are closing.
2. Use Included Data to choose what is listed: issued bills, bank transactions, and manual bills. Use the account filter to narrow the list, then click Save filters.

3. Add or remove bills

Section 1: Prepayments in this journal lists what is included. Section 2: All expenses (excluding accruals) lists every other bill, so you can check nothing was missed.

1. In Section 2, click a supplier to see its bills.
2. Click Add to journal on a bill to include it, or Not a prepayment to dismiss a suggestion. Added bills move up to Section 1.

3. To take a bill out, find it in Section 2 (marked In journal) and click Remove.

Bill not listed at all? See How to add a missing bill or cost supplier.

4. Set the service period

1. Click a bill to open it.
2. Set the Start date and End date for each line. The cost is spread evenly across these months.
3. Click Save Changes.

5. Choose the expense account

Bills coded to the prepayments account need an expense account to release to.

1. In Section 1, select the account in the Expense account column next to the supplier.

2. To use a different account for one supplier's bills, expand the supplier and select an account for each bill.

3. To use a different account for each line of a bill, click the bill to open it, select the Expense account for each line, then click Save Changes.

When you are done, click Continue to the Prepayments Journal at the top right of the page.