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Rent invoice for Purchasing

[Music] the first thing we need to do is set up the deferral template and this is a one-time setup in system search I'll go to deferral templates and I already have my deferral template set up so let's go look at this deferral deferral code is rent our description is defer rent to the next month with the intent that we're posting it in the month before our deferral account is where we want that prepaid rent to sit until we move it to expense in this case I've chosen prepaid rent as my deferral account we are deferring 100% of the amount of rent the calculation is going to be straight line and we are starting it at the beginning of the next period we will defer it over one period and our period description we are actually going to use a placeholder code of percentage for and rent and we'll see what this looks like when we actually post the invoice but the percentage for or will populate with the posting date of that journal line when our deferral template is set up we don't need to worry about setting this up anymore because it will be done for all of our rent invoices moving forward additionally we do need to make sure that our system is set up appropriately to allow these deferral postings to be posted into the general ledger in my general ledger setup I can see that I have the regular allow posting from and two dates just open for two months and my deferral posting I have open for January through December of the Year 2024 so I would just encourage you to make sure that these dates are set appropriately if you do plan to use deferrals this can also be done at the user setup level as well which would essentially be an override to your general ledger setup dates next we will want to make sure that we have a recurring purchase line set up for our rent invoices and you can see I have my rent recre purchase lines and if we view this we have our GL account pre-coded to our rent expense our department code we have a description a quantity I don't have an amount because maybe this changes from month to month and I can add any additional Dimensions that I'd like the next thing I'd like to do is make sure that my vendor is properly set up I'll click into car's cool Community because this is the vendor that we pay rent to and if I go to related and purchases and recurring purchase lines I can see that I've assigned my recurring purchase line code of rent which is monthly rent to be deferred and I've indicated that we'd like this recurring purchase line to automatically insert on purchase invoices the other thing I'd like to do on my vendor is make sure that my payment terms are properly set up for this one I have created a new payment terms code for day one of next month and you can see my due date calculation is current month plus one day what this will do is based on your document date it will take the end of that month and it will add one day we'll see how this works when we enter our purchase invoice next I'll go ahead and I'll create a new purchase invoice for this vendor I will leave my document date and posting date as 6:15 this is going to be July rent that we are posting into the period of June you can see that my due date based on my terms of current month plus one day populates as 71 my vendor invoice number I'll just fill in as July 24 rent expense you can also see that because I have recurring purchase lines set up to automatically populate in my invoices this has filled in with my GL account number my description my department code and my quantity I just need to go ahead and enter the amount I also need to add the deferral code of rent you can assign the deferral code to the GL account to be able to populate as well but here I'm just going to manually select that deferral code let's go ahead and let's do a preview posting to see what GL entries will result I have six GL entries let's start by looking at the 615 entries and if I look at my bottom two entries this is my rent expense account and I can see that it is going in and out of that account netting to zero what's then happening is it's moving that amount to my prepaid rent based on that deferral code so this will sit in prepaid rent until the next month when it's expensed we also have our payable established to the vendor in my July postings I have a credit to my prepaid rent so the amount is being taken out of prepaid rent and it is being moved to rent expense you'll also notice that this description has populated based on our placeholder code of percentage 4 in our deferral template it's populated with July rent based on the posting date of that deferral now when we're ready to make our vendor payments I can go to my payment journal as normal and in my payment journal I'll do a prepare suggest Fender payments and we would like to pay everything through July 3rd I'll do my posting date as of today 626 and I won't add any additional filters now I can see that my vendor payments are in my payment journal and if I look at the end I have car's cool Community being paid $5,000 per rent and if I look at my apply entries I can see that this is for the invoice for July rent which was posted in June with a July due date remember that even though we posted it in June we did add that deferral code meaning that the expense would be recognized in our income statement in July so now I can go ahead and I can do my vendor payments as I normally would [Music]