Creating a Prepayment in Thrive Accounts

Trojan Support User
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14 steps
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2 minutes

Thriveaccounts

Before looking at how to create a Prepayment journal, let's explain the purpose of using this journal. You can skip this explainer by clicking the right arrow button on the video, or scrolling down in the document. The purpose of a Prepayment journal is to spread the cost of a business expense over a specified number of months of the financial year, rather than posting the expense into the period the invoice was received in. An example of this is a bill for insurance which could be dated January, but would cover the periods from January to December. We would post the full invoice into January, then create monthly prepayments. Let's take a look at how to do so with the push of a button in Thrive:

Navigate to <https://app.thriveaccounts.com/> and open the Purchases Module

Click "Purchase Invoices"

Find your purchase invoice and open the overflow menu.

Click "CREATE PREPAYMENT"

This will open the prepayment journal popup. The start period will default to the current open period. Enter the ending period here.

You can also choose whether the prepayment date is the first of the month or end last date of the month.

Click "SAVE" to create the prepayment journals.

To review your prepayment journals, open the General Ledger Module.

Then click "General Ledger Journals"

Your prepayment journals will be created. The source for each prepayment will be a link to the original journal for the prepayment.

The original journal will contain the the full amount of the Purchase Invoice, with the journals in the following periods splitting the amount equally.

You can review each prepayment by clicking the journal number,

And see the original account debited, with the prepayments account credited.

This is a massive timesaver, eliminating the need to create your journals from scratch for each period.

For any further information on prepayments, contact the support team.