You have to manually add prepaid expenses in SlickPie. Follow the steps as mentioned below:
- Create Chart of Account
- Record the Transaction
- Add a Manual Journal
For instance, Paula rented a machine for her bakery for 2 months. She had to pay $500.00 as an advance payment. In this case, to record her advance payment, she will follow the steps as mentioned above and make the entries according to that.
Create Chart of Account
Paula will need to add 2 Chart of Accounts first.
- Advance to Vendor/ Advance Payment as a Prepayment under Assets. This is to record any advance payment made to the vendor.
- Rental as an Expense.
Create a Transaction
She has the option to either create a bill and then record the bill payment OR Record Expense to record the advance payment made to the vendor. In either case, she will select the Prepayment Asset account (Advance to Vendor in this case).
Add a Journal Voucher
Once the rental unit is delivered, she will create a journal voucher where she will Debit the Rental (Expense) account and Credit the Advance to Vendor (Asset) account.