I would like to know how you all manage advance paid for expense which is for fixed period,
We have to pay Trade License fee 12,000/- for each year, so I paid for it for May 2017 to April 2018, where our financial year is Jan 2017 to Dec 2017.
So now in accounting year end of 2017, shows charges till December 2017 = 8,000/-,
And for 2018 opening legal charges prepaid should show 4,000/-.
How do you manage it? Is there any way to this same as auto depreciation entry?
Perhaps you can create a Purchase Invoice for the first month and then set it as “Recurring”, till the month expense should be booked.
Hope this helps.
Hello Mr. Umair,
Thank you for your answer.
But solution I am looking for is when closing year,
break expense till closing fiscal month based on expend’s ending date and
balance payment should show as deposit.
For the new year,
Deposit will be deducting based on balance expense’s ending date.