Reoccurring AP Invoice

Some Notes from my consulting days.....
This is generally useful for leases, etc. where there are multiple fixed payment amounts for a fixed contract length.
1) Create an invoice with the total lease amount and the terms with the number of payments for the lease - 12 months, etc. The offsetting account should be a liability account - accrued lease, etc.
2) Create a G/L reoccurring entry that moves the monthly amount from the accrued account to an expense account - lease expense, etc.
That's pretty much it. 2 steps. The invoice then is out there and will be selected automatically, etc. as the payments come due. They are also out there for cash flow reporting purposes, etc. Also, when this was developed (several years ago) the accountants reviewing it thought that it was a "better" solution in their opinion than generating an invoice or payment each month because it more accurately stated the total lease commitment on the books. Â
Although it's not so intuitive in this process, once you create (and use) a payment terms of 12 months, in AP Invoice Entry you can go to Actions, Payment Schedule and alter those dates and amounts.  For example,  the first payment might be 20% down and others due on something like the first Friday of each month with the final payment truing up the yearly amount. The payment schedule screen lets you alter both the dates and amounts. This means that the "cash flow reporting" and "selected automatically" really do work - unlike 12 equal monthly payments at times.Â
If there are other reoccurring G/L entries, the second step really is part of a normal process anyway. In that scenario, the recurring AP is really 1+ steps not 3.

Stephen Schaefer
Abrams AirborneÂ

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