Prepayments & Accrual Schedules
Instead of using spreadsheets, it would be very handy for Xero to have prepayment & accruals schedules built-in that act similar to the Fixed Asset function.
For example, when you allocated a new invoice to the prepayment nominal, Xero would detect that transaction and add it to the schedule. At the end of the month, you access the Prepayment & Accruals screen, go to drafts, and fill out a form giving it the period with su[plier, start date, end date and number of days/weeks/months it lasts (this would determine how often a journal is created when ran). Once done, you can then run the prepayments for the month/period and it would create those journals in the frequency you have set (i.e. days = 1 journal per day or months = 1 journal per month).
For Accruals, you could press a button to create an accrual. From here, you would fill out the supplier, amount, start date, end and period (similar to the prepayments section). The Accruals can be ran from the same page as the prepayments. When the invoice relating to that accrual is added to Xero and allocated to the accruals nominal, Xero detects this & puts it in the draft section where the prepayments are. The user would then click on the draft and assign the previously set up accrual schedule to the invoice and would create a journal to release the difference at the end of the accrual schedule.
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Beatrix Schuster commented
This is absolutely critical in my opinion. I prepay for every one of my clients and currently have to not only run manual excel reports behind the scenes to ensure accuracy but also set each prepayment up separately. This takes far too long even with the option to repeat the prepayments.
I completely agree that it should be set up in the same way as the fixed assets, however, I'm wondering if it can be included as an option on the invoicing screen rather than having to go to another place.
For example what if:
At the point of entering the invoice you have the option to choose to prepay line items on the invoice, add a start and end date and the accounts code it relates to.
All from within the invoice section.I have tried everything available in Xero to come up with an automation for this, it simply doesn't work.
I have clients who raise dozen's of annual invoices that need to be prepaid. This would be such a game changer. -
Joanne Smith commented
Great idea. Would help our group of companies & save a lot of time!