Spread prepaid expenses over the months they cover
Add amortization on the bill line, preview the schedule and approve the bill. Wafeq posts each month's share to your expense account.
Features
Every month carries its own cost
Pay upfront once, and let the schedule post the month-end entries.
Right on the bill line
Record the bill on your prepaid expenses account and click “Add Amortization” on the line. There's no separate journal to set up.
See the schedule before you save
Wafeq previews every posting date, each month's amount and the value that remains, so you can check it first.
Entries that post on their own
Once the bill is approved, Wafeq posts each month's entry on its last day, and the prepaid balance runs down to zero.
How it works
From the bill to the monthly entries
Four steps, then Wafeq takes over.
Record the bill
Enter the bill and put the line on your prepaid expenses account.
Add amortization
Click “Add Amortization” on the line and set the start date, or tick “Same as bill”.
Choose the period and account
Pick 3, 4, 6, 12 or 24 months or a custom end date, then the expense account and the spread method.
Approve the bill
Wafeq posts each month's share to the expense account until the schedule ends.
Spread method
Choose how it's split
Choose “Even monthly split” or “Split by days in month”. If the schedule starts after the 1st, the first month gets a partial share.
- Even monthly split
- Split by days in month
- Posted on the last day of each month
More control
Set it up in seconds, adjust it any time
Let Wafeq AI prepare the schedule, and keep it right when a contract changes.
Ask Wafeq AI to set it up
Tell Wafeq AI which bill to spread. It suggests the expense account and dates, previews the schedule and creates it once you approve. Prepaid bills sent to your AI-powered inbox can arrive with their schedule, ready for you to review.
Reduce it with a debit note
Got a partial refund? Apply a debit note to the bill line, and Wafeq re-spreads the remaining balance over the months left.
End it early
Contract cancelled? End the amortization on the date you choose and move the remaining balance to the account you pick.
Also included
The details that keep it right
Small things that save time at every month-end.
Linked to the bill date
Tick “Same as bill”, and the schedule follows the bill date if it changes.
An entry for every month
Open any posted month to see its journal entry.
Status at a glance
See which schedules are “Scheduled”, “Amortizing” or “Fully amortized”.
Bills from anywhere
Upload the bill or send it by email or WhatsApp, then add amortization to the line.
Additional features
Spread revenue the same way
Billed a customer for a year upfront? Add revenue recognition on the invoice line, and Wafeq moves each month's share from unearned revenue to your revenue account.
FAQs
Frequently asked questions
It spreads a cost you paid upfront, like annual rent or insurance, over the months it covers, so each month shows its own share of the expense.
The bill line sits on your prepaid expenses account. Each month, Wafeq moves that month's share from it to the expense account you choose, such as rent expense.
On the last day of each month, and on the end date for the last one. Entries start once the bill is approved; nothing posts while it's a draft.
If the schedule starts after the 1st, the first month is partial, so its share is smaller. Choose “Split by days in month” to base every month on its number of days.
Yes. Editing it recalculates the schedule from the start and replaces the earlier entries. To lower the amount, apply a debit note; to stop it, end it early.
Yes. Ask Wafeq AI in the chat: it reads the bill, suggests the dates and the expense account, and shows the schedule. Nothing is created until you approve. When the AI-powered inbox books a prepaid bill, it can add the schedule too, and the bill stays a draft until you approve it.
Yes. Revenue recognition does the same on invoice lines, moving each month's share from unearned revenue to revenue. It's available as an add-on.
Amortization spreads prepaid expenses from a bill line. Equipment, vehicles and furniture go in Fixed assets, where you run depreciation up to any month.
Amortization schedules are included in the Premium and Enterprise plans. On a plan without them, future entries pause until you upgrade.
Close every month with accurate numbers
Spread a prepaid expense once, and let Wafeq post the rest.