How to Account Prepaid Expenses using Recurring Entry Management in Odoo
Below I am showing an Example of Posting the recurrent entries for the Rent Expense.(ie : Prepaid )
1: First I will make a payment voucher as below. (Normal Procedure)
Here : Amount is 12000
Debit : Advance Account (Prepaid Expense)
Credit : Bank
2: Next for the Recurring Entries , we need to set a Model .(1 time setting)
Menu : Invoicing > Periodic Processing > Recurring Entries > Model
Here : We can specify a name (Eg: New Division Rent Expense)
Journal : (To which voucher the entry should hit)
Then the recurring credit and debit lines (here , debit : Rent Expense,
Credit : Advance (Prepaid Exp))
3: In order to generate the entries in 'n' number of periods we need to make the following settings
Menu : Invoicing > Periodic Processing > Recurring Entries >Define Recurring Entries
Name : name of the template
Model : The model we set before(here : New Division Rent Expense)
Period : (three options : date, month ,year)
No of Periods : How many times we need to have the entry (here 12 times)
After this need to perform the compute action, then the system will show the dates for that the entries has to be created.
4: Generate Entries Option Will ask for the till date in order to generate the entries
Menu : Invoicing > Periodic Processing > Recurring Entries >
5: The following is a periodic voucher entry created in draft state
Debit : Rent Expense(1000)
Credit : Advance (Prepaid Expense)
Menu : Invoicing > Periodic Processing > Recurring Entries >Define Recurring Entries
