Prepayments

Guidance:

Our overall guidance is to only adjust for amounts over £500 (unless the client or the partner expressly requests otherwise).

You should always use days basis.

Where we have prepared management accounts, then you should seriously consider if any additional prepayments are required at year-end.  We should only do so if it is a material value, or if the client or the partner requests an additional year-end prepayment.

If this is the first year for the client in Silverfin you will need to ensure the data is correct for the previous period to enable the ability for Silverfin to complete automatic adjustment journals - see here for details. 

Step-by-Step:

The help guide from Silverfin on how to use the template itself is here

Explanation:

A prepayment is when you have incurred an invoice or a payment for something in your period that is for a period of cover exceeding your period end.

Example:

Your insurance cover runs from June 2019 to May 2020 and your year-end is February 2020.  The prepayment relates to the period from March to May 2020.