The Book-keepers Forum (BKF)

Post Info TOPIC: Pre - Payment

Senior Member

Status: Offline
Posts: 205
Pre - Payment

Good evening all,

Today I have been looking at the management monthly accounts and accruals and pre payments and one entry has baffled me.

Vehicle insurance invoice dated 1st September for 12 months from July to Aug 19.

Pi has been entered and paid in October.

Accruals have been posted for July and August. Then the previous bookkeeper has posted a further accrual and pre payment for the whole invoice in the same month as the other accruals. Why would she post this addition accrual/pre payment as I'm totally confused.


Master Book-keeper

Status: Online
Posts: 7535

Hi Nicola
Reading this - the insurance is for a 14month term? (assumed 1 July to 31 August)

Which leads me to assume the previous insurance ran out end of June, hence the two accruals in July and August (invoice as yet not received).

Another assumption - September accrual is because the invoice has not been entered until October (you said 'entered and paid October', which presumably is because she had locked down the accounts for September. If she hadnt locked down the September month she couldve just entered the invoice in September and prepaid from there.

Hope Im making sense!!



Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

Senior Member

Status: Offline
Posts: 205

Hi Joanne,

Apologies, the invoice is from August 18 to July 19. Invoice prior to this reconciles with pre-payment.

Invoice is dated 1st August but she has dated 1st September - not sure why. Invoice was received in September which would explain one of the accruals but not two accruals so i can only presume she duplicated. Accrual figures are not even correct. Upon checking there has been no month end performed since July so again not sure why she has accrued the whole invoice.

I managed to speak to the Accountant to see if they had asked her to post the figures she had posted and they haven't so i have reversed everything that is incorrect and started again.

I am the fourth Bookkeeper this year :/

Page 1 of 1  sorted by
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to
Members Login
    Remember Me  

2007-2019 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to:

Privacy & Cookie Policy  About