{"id":8894,"date":"2023-03-30T08:26:33","date_gmt":"2023-03-30T08:26:33","guid":{"rendered":"https:\/\/docs.daftra.com\/user_manual\/%d8%aa%d9%88%d8%b2%d9%8a%d8%b9-%d9%82%d9%8a%d9%85%d8%a9-%d9%85%d8%b5%d8%b1%d9%88%d9%81-%d9%85%d8%af%d9%81%d9%88%d8%b9-%d9%85%d9%82%d8%af%d9%85%d8%a7-%d8%b9%d9%84%d9%8a-%d9%85%d8%af%d9%87-%d8%b2%d9%85\/"},"modified":"2025-04-14T13:31:19","modified_gmt":"2025-04-14T13:31:19","slug":"distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system","status":"publish","type":"user_manual","link":"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/","title":{"rendered":"Distributing a Deferred\/ Prepaid Expense Automatically on a Recurring Basis through the System"},"content":{"rendered":"<div dir=\"ltr\" lang=\"en\">\n<section class=\"wpb-content-wrapper\"><p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">[vc_row][vc_column][vc_column_text]We often need to record an expense paid in advance, and then distribute the value of this prepaid expense periodically to its corresponding expense account.<\/p>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Example: The rent for premises is paid in advance for a year amounting to <strong style=\"color: #111827;\">$12,000<\/strong>,<\/p>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">The journal entry would be as follows:<\/p>\n<blockquote>\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">12000 from the Prepaid Rent Expense Account<\/strong><\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">12000 to the Treasury Account<\/strong><\/li>\n<\/ul>\n<\/blockquote>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">After recording the value of the prepaid expense, we need to deduct the amount for each month, which is <strong style=\"color: #111827;\">$1,000 <\/strong>monthly, until the cost is fully charged to the monthly expenses.<\/p>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">The monthly deduction entry would be as follows:<\/p>\n<blockquote>\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">1000 from the Rent Expense Account<\/strong><\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">1000 to Prepaid Rent Expense Account<\/strong><\/li>\n<\/ul>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">and then repeat this process monthly until the value of the prepaid expense is exhausted.<\/p><\/blockquote>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Therefore, in the following steps, we will define how to perform this process in a recurring <strong style=\"color: #111827;\">\u201cautomatic\u201d<\/strong> manner through the program.[\/vc_column_text][vc_custom_heading text=\u201dFirstly: Creating a New Treasury and Linking it to the Deferred\/ Prepaid Expense Account\u201d font_container=\u201dtag:h3|font_size:22|text_align:left|color:%2304306b|line_height:2\u2033 use_theme_fonts=\u201dyes\u201d][vc_custom_heading text=\u201dSpecifying the Routing of the Treasuries and Bank Accounts\u201d font_container=\u201dtag:h4|font_size:18|text_align:left|color:%2304306b\u201d use_theme_fonts=\u201dyes\u201d][vc_column_text]<\/p>\n<ol style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on <strong style=\"color: #111827;\">\u201cAccounting\u201d<\/strong> from the main menu.<a href=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/03\/2023-03-29_13h09_18.tif\" style=\"color: #1a56db;\"><img decoding=\"async\" class=\"alignnone size-full wp-image-2512\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/03\/2023-03-29_13h09_18.tif\" alt=\"\" style=\"max-width: 100%; height: auto;\"><\/a><\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on <strong style=\"color: #111827;\">\u201cAccounting Settings\u201d<\/strong>.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on <strong style=\"color: #111827;\">\u201cAccounts Routing\u201d<\/strong>.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Select <strong style=\"color: #111827;\">\u201cTreasury\u201d<\/strong> from the menu on the left side.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Choose the type of routing <strong style=\"color: #111827;\">\u201cSpecify per each\u201d<\/strong> instead of <strong style=\"color: #111827;\">\u201cAutomatic Account Routing\u201d<\/strong> as shown below.<\/li>\n<\/ol>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-8900 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/03\/2023-11-30_14h31_47.png\" alt=\"\" width=\"1479\" height=\"271\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/03\/2023-11-30_14h31_47.png 1479w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/03\/2023-11-30_14h31_47-300x55.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/03\/2023-11-30_14h31_47-1024x188.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/03\/2023-11-30_14h31_47-768x141.png 768w\" sizes=\"auto, (max-width: 1479px) 100vw, 1479px\" style=\"max-width: 100%; height: auto;\">[\/vc_column_text][vc_custom_heading text=\u201dAdding a New Treasury and Linking it to the Sub-account\u201d font_container=\u201dtag:h4|font_size:18|text_align:left|color:%2304306b\u201d use_theme_fonts=\u201dyes\u201d][vc_column_text]<\/p>\n<ol style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">From the main menu, click on <strong style=\"color: #111827;\">\u201cFinance\u201d<\/strong>.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on <strong style=\"color: #111827;\">\u201cTreasures &amp; Bank Accounts\u201d<\/strong>.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on the <strong style=\"color: #111827;\">\u201cAdd Treasury\u201d<\/strong> button.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">In the Add Treasury screen, fill in the treasury details as follows:<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Status:<\/strong> Choose \u201cActive\u201d to activate the treasury or \u201cInactive\u201d to deactivate it.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Treasury Name:<\/strong> Write the name of the treasury as you want it to appear in the program\u2019s lists and windows.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Description:<\/strong> Add a general description of the nature or specialty of the treasury.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><em><strong style=\"color: #111827;\"><u>Account:<\/u><\/strong> <strong style=\"color: #111827;\"><u>Delete the phrase \u201cDefault Account\u201d and then select the sub-account specific to \u201cPrepaid Expense Account\u201d<\/u><\/strong>.<\/em><\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Permissions:<\/strong>\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Deposit:<\/strong> Select from the dropdown menu the deposit permission in the treasury for a specific employee, job role, specific branch, or all.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Withdrawal:<\/strong> Select from the dropdown menu the withdrawal permission from the treasury for a specific employee, job role, specific branch, or all.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">[\/vc_column_text][vc_custom_heading text=\u201dSecondly: Adding an Expense of the Value of the Deferred\/ Prepaid Expense\u201d font_container=\u201dtag:h3|font_size:22|text_align:left|color:%2304306b|line_height:2\u2033 use_theme_fonts=\u201dyes\u201d][vc_column_text]<\/p>\n<ol style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on <strong style=\"color: #111827;\">\u201cFinance\u201d<\/strong> from the main menu.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on <strong style=\"color: #111827;\">\u201cExpenses\u201d<\/strong>.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on the <strong style=\"color: #111827;\">\u201cNew Expense\u201d<\/strong> button.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Enter the expense data as follows:\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Amount:<\/strong>\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Enter the value or amount of the expense.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Select the currency of the expense voucher to be recorded.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Description:<\/strong> Enter any notes or additional guidance that describe the expense.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Code Number:<\/strong> It is a serial number that distinguishes the expense voucher, and you can change the number and control the format of the series through <strong style=\"color: #111827;\">\u201c<a href=\"https:\/\/docs.daftra.com\/en\/tutorial\/setting-up-auto-numbering-settings\/\" target=\"_blank\" rel=\"noopener\" style=\"color: #1a56db;\">Auto Numbering Settings<\/a>\u201c<\/strong> in the account.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Date:<\/strong> Select from the calendar the date of adding the expense voucher to the system.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><b style=\"color: #111827;\">Attachments:<\/b> You can attach a picture of the expense by clicking the <strong style=\"color: #111827;\">\u201cUpload\u201d<\/strong> button and selecting the picture from your device, or through drag and drop.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Received By:<\/strong> Select the recipient of the income voucher.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Category: <\/strong>Select one of the categories from the dropdown menu or add a new category for expense vouchers.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Treasury:<\/strong> Select the treasury or bank account that will issue the expense, from the treasuries or bank accounts added to the account. For more details on how to add a new treasury\/bank account, you can review the guide \u201c<a href=\"https:\/\/docs.daftra.com\/en\/tutorial\/adding-a-treasury-bank-account-in-your-daftra-account\/\" target=\"_blank\" rel=\"noopener\" style=\"color: #1a56db;\"><strong style=\"color: #111827;\">Adding a Treasury\/Bank Account<\/strong><\/a>\u201c.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><em><strong style=\"color: #111827;\"><u>Journal Account: Select the Deferred Expense account in the \u201cJournal Account\u201d field, for example: Prepaid Rent Expense Account<br>\n<\/u><\/strong><\/em><\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on <strong style=\"color: #111827;\">\u201cAdd Taxes\u201d<\/strong> to assign tax to the expense voucher if applicable.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Select <strong style=\"color: #111827;\">\u201cAssign Cost Centers\u201d<\/strong> to link all or part of the expense value with one of the cost centers in the account.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click the <strong style=\"color: #111827;\">\u201cSave\u201d<\/strong> button to issue the expense voucher.<\/li>\n<\/ol>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">[\/vc_column_text][vc_custom_heading text=\u201dThirdly: Adding a Recurring Expense for Monthly Deduction.\u201d font_container=\u201dtag:h3|font_size:22|text_align:left|color:%2304306b|line_height:2\u2033 use_theme_fonts=\u201dyes\u201d][vc_column_text]<\/p>\n<ol style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on <strong style=\"color: #111827;\">\u201cFinance\u201d<\/strong> from the main menu.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on <strong style=\"color: #111827;\">\u201cExpenses\u201d<\/strong>.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on <strong style=\"color: #111827;\">\u201cNew Expense\u201d<\/strong>.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Ensure you choose the \u201cRent Expense\u201d account, for example, in the \u201cJournal Account\u201d field<\/strong><\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">In the treasury field, ensure you select the treasury that was created and linked to the Prepaid Expense account as previously explained.<\/strong><\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on the checkbox <strong style=\"color: #111827;\">\u201cRecurring\u201d<\/strong>.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Select the duration of <strong style=\"color: #111827;\">\u201cFrequency\u201d<\/strong> whether <strong style=\"color: #111827;\">Weekly<\/strong>, <strong style=\"color: #111827;\">Monthly<\/strong>, or <strong style=\"color: #111827;\">Yearly<\/strong>. In the case of the example mentioned above, select <strong style=\"color: #111827;\">\u201cMonthly\u201d<\/strong> recurrence to deduct the amount each month on the specified date.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Select from the calendar the <strong style=\"color: #111827;\">\u201cEnd Date\u201d<\/strong> at which the repetition of the expense voucher stops and the total amount of the prepaid expense has indeed been accrued.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click on the <strong style=\"color: #111827;\">\u201cSave\u201d<\/strong> button.<\/li>\n<\/ol>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_message message_box_style=\u201d3d\u201d message_box_color=\u201dalert-warning\u201d]<\/p>\n<blockquote><p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Once you complete the previous steps, the program will monthly deduct the estimated rental expense of $1,000 each month until the end date of the recurrence is reached.<\/p><\/blockquote>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">[\/vc_message][\/vc_column][\/vc_row]<\/p>\n<\/section>\n<\/div>\n","protected":false},"author":17,"template":"","categories":[2118,2108,2119],"tags":[4902,4898,4901,4893,4899,4900],"class_list":["post-8894","user_manual","type-user_manual","status-publish","hentry","category-finance","category-accounting","category-expenses","tag-accrued-expense","tag-deferred-expense","tag-distributing-an-expense","tag-paid-in-advance","tag-prepaid-expense","tag-recurring-expense"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Distributing a Deferred\/ Prepaid Expense Automatically on a Recurring Basis through the System - Daftra Knowledge Base<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Distributing a Deferred\/ Prepaid Expense Automatically on a Recurring Basis through the System - Daftra Knowledge Base\" \/>\n<meta property=\"og:description\" content=\"[vc_row][vc_column][vc_column_text]We often need to record an expense paid in advance, and then distribute the value of this prepaid expense periodically to its corresponding expense account. Example: The rent for premises is paid in advance for a year amounting to $12,000, The journal entry would be as follows: 12000 from the Prepaid Rent Expense Account 12000 [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/\" \/>\n<meta property=\"og:site_name\" content=\"Daftra Knowledge Base\" \/>\n<meta property=\"article:modified_time\" content=\"2025-04-14T13:31:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/03\/2023-03-29_13h09_18.tif\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/docs.daftra.com\/#website\",\"url\":\"https:\/\/docs.daftra.com\/\",\"name\":\"Daftra Knowledge Base\",\"description\":\"Daftra\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/docs.daftra.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/03\/2023-03-29_13h09_18.tif\",\"contentUrl\":\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/03\/2023-03-29_13h09_18.tif\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/#webpage\",\"url\":\"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/\",\"name\":\"Distributing a Deferred\/ Prepaid Expense Automatically on a Recurring Basis through the System - Daftra Knowledge Base\",\"isPartOf\":{\"@id\":\"https:\/\/docs.daftra.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/#primaryimage\"},\"datePublished\":\"2023-03-30T08:26:33+00:00\",\"dateModified\":\"2025-04-14T13:31:19+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/docs.daftra.com\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Distributing a Deferred\/ Prepaid Expense Automatically on a Recurring Basis through the System\"}]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Distributing a Deferred\/ Prepaid Expense Automatically on a Recurring Basis through the System - Daftra Knowledge Base","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/","og_locale":"en_US","og_type":"article","og_title":"Distributing a Deferred\/ Prepaid Expense Automatically on a Recurring Basis through the System - Daftra Knowledge Base","og_description":"[vc_row][vc_column][vc_column_text]We often need to record an expense paid in advance, and then distribute the value of this prepaid expense periodically to its corresponding expense account. Example: The rent for premises is paid in advance for a year amounting to $12,000, The journal entry would be as follows: 12000 from the Prepaid Rent Expense Account 12000 [&hellip;]","og_url":"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/","og_site_name":"Daftra Knowledge Base","article_modified_time":"2025-04-14T13:31:19+00:00","og_image":[{"url":"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/03\/2023-03-29_13h09_18.tif"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/docs.daftra.com\/#website","url":"https:\/\/docs.daftra.com\/","name":"Daftra Knowledge Base","description":"Daftra","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/docs.daftra.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","@id":"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/#primaryimage","inLanguage":"en-US","url":"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/03\/2023-03-29_13h09_18.tif","contentUrl":"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/03\/2023-03-29_13h09_18.tif"},{"@type":"WebPage","@id":"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/#webpage","url":"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/","name":"Distributing a Deferred\/ Prepaid Expense Automatically on a Recurring Basis through the System - Daftra Knowledge Base","isPartOf":{"@id":"https:\/\/docs.daftra.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/#primaryimage"},"datePublished":"2023-03-30T08:26:33+00:00","dateModified":"2025-04-14T13:31:19+00:00","breadcrumb":{"@id":"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/docs.daftra.com\/en\/user_manual\/distributing-a-deferred-prepaid-expense-automatically-on-a-recurring-basis-through-the-system\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/docs.daftra.com\/en\/"},{"@type":"ListItem","position":2,"name":"Distributing a Deferred\/ Prepaid Expense Automatically on a Recurring Basis through the System"}]}]}},"_links":{"self":[{"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/user_manual\/8894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/user_manual"}],"about":[{"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/types\/user_manual"}],"author":[{"embeddable":true,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":5,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/user_manual\/8894\/revisions"}],"predecessor-version":[{"id":33417,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/user_manual\/8894\/revisions\/33417"}],"wp:attachment":[{"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/media?parent=8894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/categories?post=8894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/tags?post=8894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}