A number of other ERP systems (I know Sage do) have functionality to set up and automatically post monthly prepayments where you enter details such as the value, number of months and GL coding, etc and an automatic process will post the monthly adjustment to release the costs back to the P&L. I imagine the process would be similar as depreciation, almost creating a prepayment register. Does anyone do anything similar in Kinetic? I cannot see this functionality is available? Thanks 
Not an accountant, so I’m finding your post a little confusing. Are you talking about an actual transaction happening in the system like an invoice or just some movement between 2 accounts?
You’ll want to look at Deferred Expenses in AP Invoice Entry and the help documents. There are a few different things you’ll need to set up: Amortization schedules, GL controls, and the scheduled process to post the transactions, but Epicor can do this.
Edit to be more complete:
In AP Invoice Entry, you can mark an invoice line as “Deferred Expense”. When you do this, you need to select a pre-created Amortization Code which defines the prepaid asset account, monthly expense account, and length/method of the amortization schedule. Once you select this code, the Invoice will populate the amortization schedule where you can override it if needed.
After you post the invoice, there is a program called “Deferred Expense Recognition” where you can load pending monthly expenses, review, and post them. This process can be scheduled to happen automatically. There is also a report called “Deferred Expense Reconciliation” which should act as your subledger for your pre-paid asset account to ensure you are reducing the asset correctly as you charge the expenses to the P&L.
Hi, that’s great thank you I will look into that option. I think the issue for us may be that the invoices are all processed by an AP team and they may not know whether the invoice should be prepaid or not at the time of entering the invoice, but I will have a play and see if that will be suitable or if there is a way of marking as deferred expense after the invoice has been posted. Thank you
You can also use the Deferred Expense option in GL Journal Entry. If your AP Team won’t know that it’s a prepaid expense when entering the invoice, your accountant or controller could enter a journal after the fact and use the same Deferred Expense setup to generate the prepaid asset and monthly P&L expenses.
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Perfect, I will do some testing on this. Thank you!