Amortizing Costs

[Lidleoompa]

Does anyone know how to create a journal entry to amortize costs?? (ex….do a credit in January then spread out the debits throughout rest of the year) To my knowledge, ACCPAC only lets you create a journal entry for the same period.

 

[dgillz]

I do not know if this will work in ACCPAC but in Macola we tricked the fixed assets module to do this.

In my case we had some unearned revenue that we wanted to take 1/24th of, each month. So we setup an "asset" with the total value we wanted to amortize, and gave it a 24 month, straight line "depreciation" method. We then mapped the accumulated depreciation account to the revenue account we wanted to credit every month, and the depreciation expense account to the liability we wanted to reduce. So our journal entry every month was:

Dr Deferred Revenue
Cr Revenue

We have also amortized prepaid expenses, making the depreciation expense account the actual expense we wanted to recognize, and the accumulated depreciation account the prepaid expense account. So every month we got:

Dr Expenses
Cr Prepaid Expenses

If ACCPAC fixed assets is anthing like Macola's this should work for you.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"If you have a big enough dictionary, just about everything is a word"
--Dave Barry