What Is a Prepaid Expenses Schedule Definition?

A prepaid expenses schedule definition is a predefined template used as a basis for a prepaid expenses schedule.

You can use the prepaid expenses schedule definition to specify:

• The interval, in months, between journal postings.
• Whether the expense is pro-rated in the initial journal, based on the days remaining in the interval.

A default Monthly Prepaid Expenses Schedule Definition is created automatically during the configuration of the Prepaid Expenses feature by your administrator. For more information, see Setting up Prepaid Expenses.

The Prepaid Expenses Schedule Definitions tab enables you to create and locate your prepaid expenses schedule definitions.

You can also sort and filter your prepaid expenses schedule definitions using standard and custom list views. In addition, this tab lets you view and edit detailed information on each prepaid expenses schedule definition.

Days Pro Rata Example

Prepaid expense journal amounts are calculated by dividing the total amount by the number of journals generated between the start and end date. The posting date for the journals is set to the same day of the month. In some circumstances, you can have expense payments that begin part way through a month, with subsequent payments due at the start of each following month. To reflect this, you can use the Days Pro Rata checkbox, to reduce the initial journal amount based on the number of days remaining. If you do this, an additional final journal is created for the outstanding amount.

In the following example, we are generating an annual payment of £12,000, with an initial journal to be posted on 9th February. 12 additional journals are generated to be posted on the 1st of each month and a final journal is added to post the remaining amount, from the days pro rata in the initial month.