Amortizable Prepaid Reconciliation Type

This reconciliation type is used to keep track of items that are paid for in one accounting period, and are expensed in several future accounting periods. This type of reconciliation allows you to record specific payments for amortizable items and set up a schedule by month of what expense should be recorded over the “life” of the prepaid item. The most likely accounts to use an Amortizable Prepaid reconciliation are:

• Prepaid Property Tax - if you pay property taxes once a year (or even quarterly) the expense should be spread over the period defined by the taxing authority
• Prepaid Licenses - licenses might relate to vehicles or fees charged by a governmental agency on an annual basis such as a CPA license fee or a Surface Water Discharge permit
• Prepaid Heavy Vehicle Tax - sometimes fees charged by the IRS may apply to future periods such as the Heavy Vehicle Use Tax that is paid when you file your Form 2990

You can click on the appropriate link to see an example of the reconciliation.

Each Reconciliation Type has its own unique reconciliation report. Click here to go to the Amortizable Prepaid Reconciliation Report to see what shows up on the end of the month report.

Each Reconciliation Type has its own specially designed input form. Click here to go to the Amortizable Prepaid Input Form to see what type of information is requested when you complete this type of reconciliation.