Amortizing Prepaid Expenses

Create the Amortization Schedule

 First check that there is an appropriate existing amortization schedule that can be used.  

If not then create a new Amortization Schedule as follows:

  • Go to Amortization Template [Finance > Lists > Amortization Schedules]
  • Enter Name for schedule
  • Enter Deferral Account
  • Save
  • Go to Entry / Item record and link to amortization schedule
  • Add start and end date

Note that amortization schedules are based on the invoice or expense line item. When the amortization schedule is set up it will automatically post to the Prepaid Account if Prepaid account is set up as the deferral account.

On a monthly basis run amortization entry, by going to “Create Amortization Journal Entries”. 

Note:  For the quarterly Genus LT Management Fee invoice a specific process must be followed:  

  • Enter Genus LT Mgmt Fee Invoice directly to NetSuite.  Do NOT enter Genus LT Investment mgmt fee invoice into Concur.  Enter directly into NetSuite. 
  • Do NOT check box “Run Suite/GL”
  • Enter with a separate department for the amount of the invoice (pre-GST) to be allocated = “Administration”
  • Enter 50% of the GST amount with department = “Finance”
  • Enter the GST rebate manually with department = “Finance”

Example below:

  • Do NOT associated Amortization Schedule with the GST rebate lines**
  • Select the appropriate Amortization schedule with the Expense and 50% GST portion
  • Select the start and end dates to amortize

If creating a new invoice directly in NetSuite – do not select prepaid account, select the appropriate expense account as the amortization schedule will default to the Prepaid account as per set up.

**NOTE:  DO NOT run the amortization schedule on the GST line.  If you do, the GST rebate will hit the expense account at the time the invoice is processed.  The amortization schedule does NOT impact the GST rebate amount or time of posting.

Run the Amortization Schedule

Check “Create Journals”

Approve Journal Entry

The journal will appear in the "To be Approved" list for another finance team member to post. 

Review GL Impact

You should take a moment to review the GL Impact to ensure that the amortization is working as expected.