About prepaid expense amortization

This information is for the native Sage Intacct application. For the marketplace application developed by Systems Integration Group (SIG), see About SIG Prepaid Expense Amortization.

Prepaid expense amortization helps you automate expense recognition for amounts paid in advance, such as insurance policies, software subscriptions, maintenance agreements, and rent. Apply amortization details to AP supplier invoices and purchase transactions, and Intacct automatically creates schedules and journal entries to manage expense recognition over time.

This feature is included with Accounts Payable and does not require a separate subscription.

Key benefits

  • Automate expense recognition: Generate schedules and journal entries that recognize prepaid expenses over time.

  • Reduce manual effort: Replace spreadsheets and manual journal entries used to track prepaid expenses.

  • Improve financial accuracy: Recognize expenses in the appropriate accounting periods.

  • Work directly from transactions: Apply amortization details to AP supplier invoices and purchase transactions without maintaining a separate application.

  • Increase visibility: Use schedules and forecast reports to monitor upcoming activity, expense recognition, and prepaid balances.

How it works

Create an amortization template in Accounts Payable to define how prepaid expenses are recognized over time.

Two amortization methods are available on the template:

  • Straight-line distributes a prepaid amount evenly across the amortization period.

  • Charges constatées d'avance (CCA) creates deferred adjustment entries for France-specific accounting requirements.

See Prepaid expense amortization examples for worked examples that show how each method calculates schedule amounts and journal entries.

After you create a template, apply the template and amortization dates to an AP supplier invoice or purchase transaction line.

When the AP supplier invoice is posted, Intacct creates a schedule on the AP supplier invoice line. Journal entries are then created and posted according to the schedule. You can review schedule activity, monitor upcoming entries, and use forecast reports to analyze future activity.

To get started, see Prepaid expense amortization workflow.

Regional availability

Prepaid expense amortization is available in all regions.

The same framework also supports Deferred adjustments for charges constatées d'avance (CCA) for organizations that follow French accounting requirements.

Community and support

In addition to the documentation in this Help Center, you can find more resources in the Sage Intacct Community by searching for and joining the "Prepaids" group.

The Sage Intacct Community provides a variety of ways to find answers to support-related questions:

  • Connect with colleagues as part of a community.
  • Search knowledgebase articles that address common questions, issues, and troubleshooting solutions.
  • Log a support case, consult with Sage Intacct Customer Support Representatives, and manage open cases.

Find out how to sign up and get the most out of the Community.