Expenses
Spreading an expense over several months
Learn how to amortize an expense such as a prepaid rent over several periods.
How to spread an expense paid upfront
Assume you've paid 12,000 + 15% VAT = 13,800 rent upfront for 1 year and you want to spread the expense over 12 months.
Here's how you'd book it:
Create an expense with the following:
- Select
Cash Expense
from the side menu. - Date: Date you paid the rent upfront.
- Account:
Prepaid Rent
. You may want to create this account in your Chart of Accounts. - Amount:
13,800
- Paid through:
Bank Account
- VAT:
VAT on Purchases (15%)
- Select
Spread the expense monthly exclusive of VAT by creating 12 identical expenses for each month:
- Date: date for each month you want to recognize the expense (e.g. end of each month).
- Account:
Rent
. You may want to create this account in your Chart of Accounts. - Amount:
1,000
(=12,000
/12
) - Paid through:
Prepaid Rent
Use the date auto-fill feature to easily duplicate a row over several periods.
![autofill.gif](/_next/image?url=https%3A%2F%2Ffirebasestorage.googleapis.com%2Fv0%2Fb%2Fwafeq-docs.appspot.com%2Fo%2Fmedias%252Fe478834e_autofill.gif%3Falt%3Dmedia&w=1920&q=75)