Auto reverse journal

Assuming your fiscal year ended as of December, and you have paid for insurance from October to March. The premium paid from January to March is not a current-year expense, which you must reclassify to a prepayment account when processing the year-end closing and then reverse in the following year.

A prepayment is an advance payment for goods and services which you will receive later.

The reversal process can be automated with the recurring feature. From the prepayment journal, click the 'Setup' button next to the 'Make Recurring' checkbox. Then, select the 'Once Only' option from the wizard, enter a recurring date, and check the 'Reverse' checkbox to complete the auto-reversal set-up. A reverse journal will be created when due.

The recurring feature helps reduce tedious accounting tasks such as recurrent rent, payroll, depreciation, accruals, invoices for subscription and school fees, or use it as a reversal entry for prepayments or work-in-progress (WIP) or use it as a reversal entry for prepayment or work-in-progress (WIP), etc.

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