Download A: Prepaid Expense Amortisation Schedule (.xlsx)
What it does
Spreads prepaid costs (insurance, AMC, licences) over the service period, by day or by month. Gives the monthly P&L charge, the prepaid balance roll-forward and a GL-wise summary.
Who it is for
Accountants closing the books each month, and auditors checking the prepaid balance.
How to use it
- Go to the 'Register' tab. In cell C5 type the first month of the period you want to report (for example 01-Apr-2026 for FY 2026-27). The schedule always covers 12 months from that month.
- Delete the sample rows (yellow cells in rows 9 to 16) and type one line per prepaid invoice: reference, vendor, description, GL code, invoice date, amount (excluding recoverable GST), service start date and service end date.
- In the 'Method' column pick Daily (cost spread by number of days, most precise) or Monthly (equal amount in every calendar month the service touches).
- Look at the 'Flag' column. 'OK' is fine. Anything else (for example the invoice is dated after the service started) needs a second look.
- Open the 'Schedule' tab to see the charge for every line in every month. The bottom row is the total P&L charge per month.
- Open the 'Summary' tab. Type your GL codes and names in the yellow cells. It shows the monthly roll-forward (opening balance + new prepaid invoices - charge to P&L = closing balance) and the charge per GL. Use the month's column to post your journal: Debit expense GL, Credit Prepaid expenses.
- Check the 'Checks' box at the bottom of the Summary tab. Every line should read OK before you rely on the figures.
Tabs in the file
| Tab | What it holds |
|---|---|
| Register | Your list of prepaid invoices (inputs) with total days, months, amount already expensed, and closing balance. |
| Schedule | Month-by-month charge for each line for the 12-month period. |
| Summary | Monthly roll-forward of the prepaid balance, charge by GL code, and reconciliation checks. |
Learn the topic
For computation and reconciliation assistance only; not a substitute for formal statutory audit or legal tax advice. All sample data is illustrative and made up. Rates, limits and rules must be checked against current law and your own agreements before use. No tax saving, audit outcome or compliance result is promised.