Posting Manual Prepayments Using a Document Input Form
Any missing pre-payments can be identified by running the Management Account Trends report. If prepayments were not correctly defined at the time the transaction was entered, they need to be manually created.
Manual prepayments are required when an invoice has already been posted that did not include the prepayment entries. This is achieved by posting a Prepayments document input form. The required prepayment entries will automatically be posted by the system once the prepayment document has been posted.
The Prepayments document input form may not have been installed by default (depending on the version of IRIS Financials you are using and may therefore need to be imported and configured before this process can be carried out. If you begin the process and find that the Prepayment form is not there, see Importing and Configuring the Prepayments Document Input Form . Alternatively, you can post the prepayment using a change document (System Journal Input form). For more information, see Posting Prepayments Using a Change Document .
Before posting any prepayment documents, it is essential to check that all the accounting periods within the prepayment timeframe exist, and have an access level of 8 or less. Prepayments will not be able to be posted to the correct periods if this is not the case, and can be time consuming to rectify. For information on how to check the access level, see Checking Accounting Period Access Levels (v2, v4, v6).
Example used: An invoice was received for insurance totalling £12,000. The policy covers 01/09/2020 to 31/08/2020. The invoice was entered, but the prepayment was overlooked. A prepayment needs to be posted covering the applicable accounting periods.
- Select Options > Document Input from the top menu.
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The Document Input dialog is displayed. Select the applicable Prepayment to Balance Sheet document type
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Select Prepayments from the Input Form drop-down list.
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Select an applicable Document Date and Document Period from the respective drop-down lists. This will be the date and period the initial prepayment document is posted to the Prepayments nominal.
- Click the OK button. The Prepayments document input form is displayed.
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In the first Description field enter the description of the prepayment. E.g.
Annual Insurance Premium.
- Enter the date the prepayment begins in the Start Date field. The date must be entered in DD/MM/YYYY format.
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Enter the end date of the prepayment in the End Date field.
The accounting periods covered in the Start Date and End Dates must be at an access level you can post to. The manual prepayment document input form uses your own user access level , which is different to that of the automatic prepayments used on purchase invoices, credit notes and miscellaneous payments. If the access level is too high, the prepayment will not release. Please check with your system administrator if you are unsure how to check this.
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Double-click in the Nominal field and select the applicable nominal from the List of Nominals dialog.
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Double-click the Account field and select an applicable Account from the List of Accounts dialog to post the prepayment against.
- Enter the full amount of the expense being prepaid in the Value field - in our example it is
12,000. -
Enter a description for the prepayment detail line in the Description field. This is the description which will appear in a Document Enquiry.
Do not enter any additional lines on the Prepayments document input form. You should only post one line per document. If you attempt to post multiple lines, the prepayments will not release correctly into the applicable periods.
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Press F5 to post the document. After a few minutes the system will post the automated prepayment documents.
Prepayment Nominal
The following graphic shows the result of our example prepayment on the Prepayment nominal (LLL9320). Document LLPB111 posts the full expenditure to the Prepayment nominal on the balance sheet: 12,000 in our example. Documents LLPM440-451 release the applicable prepayment amounts over the specified monthly periods to the applicable expenditure nominal.
Expenditure Nominal
The following graphic shows the LLL3260 (Insurance) nominal that the prepayment was posted to. Document LLPB111 transfers the full cost of LLPI377 to the prepayments nominal on the balance sheet. The LLPM440-451 documents reverse the prepayment back into the expenditure nominal against the applicable accounting periods.
