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Former Member
Jul 07, 2009 at 01:17 PM

Prepaid Expense Accounting

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Dear Sir,

We have a following scenario related to Pre-Paid Expenses .

Say we place a Service Order to some Vendor for the Annual Maintenance Services (AMC) of Computers for a value of Rs 100K and as per the payment terms amount is paid to Vendor in advance half-yearly (means 50K advance half yearly) .

We need to address this Pre-paid exepnses in SAP , so that every month actual expense gets booked to relevant expense head .

Kindly guide us about the steps to be followed to meet the Pre-paid expenses accounting .

Regards

Sonia agarwal