How to set up and process automatic prepayments

In Sage 50 Accounts, you set up prepayments to post automatically as part of your month end routine.

NOTE: The automatic Prepayment feature isn't available in Sage 50 Accounts Essentials and Sage 50 Accounts Standard. To upgrade your software, leave your details, and we'll be in touch. 

Alternatively you can post manual prepayments using journals.

Before you start

Process the invoice or payment as usual as a purchase invoice or a bank payment to the overheads nominal code.

Set up a prepayment

In this example, we create a prepayment to show a rent payment of £/€600 covering a three-month period from January to March.

1. Go to Nominal codes, then Prepayments.
2. Enter the relevant information to record the prepayment in the Prepayments window, for example:
   
   

   TIP: If preferred, you can click Wizard then follow the on-screen prompt.

   N/C	Nominal code, for example, Rent.
   Details	Details, for example Rent.
   Department	Enter a department, if required, 0 by default.
   Fund	Enter a fund, if required. Only available if you have the charities option enabled.
   Prepayment N/C	Updated automatically.
   Value	The total net value of the prepayment, for example, £/€600. If you can't evenly divide your prepayment amount by the number of months, the software rounds in the final month. TIP: If the monthly values change during the length of the prepayment, delete and re-add the prepayment.
   Months	Number of months for the prepayment. This can be between 2 and 12.
   Monthly Amount	Updated automatically.
   Posted	Updated automatically.

3. Click Save, then OK.

You've now created the prepayment. The software will process this when you next run your month end routine by selecting the Include any prepayments in the month end checkbox.  

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• How to set up and process automatic accruals