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Prepaids & amortization

Keep prepaid schedules current without another spreadsheet.

Rebase identifies prepaid expenses, maintains the underlying schedules and prepares the period's amortization entries using your accounting treatment and approval process.

From source document to monthly recognition, with the schedule and evidence attached.

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An illustration of a prepaid schedule in Rebase on 31 March 2026: Travelers Insurance invoice INV-29140, 240,000.00 for cover from 1 January to 31 December 2026, recognised straight-line at 20,000.00 a month. January and February are recognised; in March the prepaid opens at 200,000.00, 20,000.00 is amortized and it closes at 180,000.00. The period's entry, debit 6310 Insurance and credit 1500 Prepaid expenses for 20,000.00, is ready for review, with the invoice, the policy, the payment and the prior entries attached.

The work behind the schedule

The schedule should maintain itself when the underlying facts are known.

Finance teams open the prepaid workbook every month to add new purchases, update service periods, calculate recognition and prepare the same recurring entries.

An illustration of prepaid schedules kept two ways: by hand, ten steps across the ledger, the invoices and a workbook, repeated every month; and by Rebase, which keeps 1500's four schedules at 318,750.00, prepares March's 33,750.00 amortization entry and flags one contract change for review.

Worked example

From invoice to recognition.

The insurance policy, from the invoice in January to the entry in March and the schedule carried into April.

An illustration of the insurance prepaid in seven stages across four objects. The document: Rebase detects Travelers' 240,000.00 invoice INV-29140 of 5 January as a potential prepaid and reads its service period, 1 January to 31 December 2026. The service period: it applies the prepaid policy, a prepaid asset recognised straight-line. The schedule: it builds twelve months of 20,000.00. The entries: it prepares March's 20,000.00 on JE-4475, routes it to Dana Ruiz, Controller, and carries the schedule into April, where the next 20,000.00 is already scheduled.

Common prepaids

What finance teams pay for in advance.

Six kinds of prepaid, each with its own document and term. Open one to see what Rebase reads, how it treats it and the schedule it keeps.

  • InsuranceAnnual or multi-year cover, paid up front.Travelers · 240,000.00 · 20,000.00 a month
    What Rebase does

    Reads the invoice and the policy's dates, sets up the schedule, and recognises it straight-line over the cover.

    Typically reads Business Central, Policy documents, and Plaid.

    180,000.00 left at 31 Mar · nine months to run

  • Software contractsAnnual subscriptions and infrastructure paid in advance.Halcyon Software · 120,000.00, amended to 180,000.00 from 1 Apr
    What Rebase does

    Reads the contract term and any amendment, and recalculates what is left to recognise when the terms change.

    Typically reads Business Central, Contracts and amendments, and Gmail.

    16,666.67 a month from April · change waiting on review

  • RentRent paid before the period it covers.April rent 26,250.00 · paid 25 Mar · recognised in April
    What Rebase does

    Matches the payment to the lease, holds it as prepaid at month-end, and recognises it in the month it covers.

    Typically reads Lease, Plaid, and Business Central.

    One month, one entry · 30 Apr

  • Maintenance and supportSupport agreements that run across periods.Meridian Networks · 45,000.00 · Oct 2025 to Sep 2026
    What Rebase does

    Reads the agreement's dates, which can start mid-year, and recognises the support month by month across the year end.

    Typically reads Agreements and Business Central.

    3,750.00 a month · 22,500.00 left at 31 Mar

  • LicensesContractual rights that cover future periods.Recognised over the licence term
    What Rebase does

    Takes the term from the agreement, starts recognition when the licence starts, and flags renewals before the schedule runs out.

    Typically reads Agreements and Business Central.

    Term from the agreement · renewal flagged 60 days ahead

  • Other prepaid servicesAnything paid now whose benefit runs across periods.Flagged when an invoice covers more than one period
    What Rebase does

    Reads new invoices against your policy's threshold and term, and proposes a schedule for anything that qualifies rather than expensing it.

    Typically reads Invoices and Business Central.

    Over 10,000.00 and longer than a month → proposed as a prepaid

Every amount, traceable.

The insurance schedule for 2026. Select a month's recognition to see what produced it.

An illustration of the insurance prepaid schedule for 2026: 240,000.00 added in January and 20,000.00 recognised each month, so the prepaid closes January at 220,000.00 and falls by 20,000.00 a month to 0.00 in December. January and February are posted, March is ready for review and April to December are scheduled. Each month's recognition opens onto the invoice, the service period, the recognition logic and the entries before and for that month.
xlsxPrepaid schedule · Travelers INV-291401500 · Prepaid expenses · 2026
MonthRecognitionState
JanPosted
FebPosted
MarReady for review
AprScheduled
MayScheduled
JunScheduled
JulScheduled
AugScheduled
SepScheduled
OctScheduled
NovScheduled
DecScheduled

Select an amount in Recognition to see where it came from.

Where it came from

Mar 202620,000.00

Invoice
INV-29140 · Travelers Insurance · 240,000.00 · 5 Jan
Service period
1 Jan to 31 Dec 2026 · 12 months
Recognition logic
240,000.00 ÷ 12 = 20,000.00 a month, straight-line · prepaid policy §2
Prior entry
JE-4288 · Feb, posted
This month's entry
JE-4475 · prepared, ready for review

When the contract changes, the schedule should too.

A recurring entry that ignores an amendment is wrong from the month it takes effect. Rebase reads the change and recalculates what is left.

An illustration of a contract amendment handled by Rebase. Halcyon Software's 2026 subscription was 120,000.00, 10,000.00 a month. An amendment dated 24 March, effective 1 April, takes the year to 180,000.00. January to March stay recognised at 30,000.00; the remaining 150,000.00 is spread over April to December at 16,666.67 a month, with 16,666.64 in December. The schedule change waits on review.

Every recognised amount has a source.

The schedule's record holds the document, its dates, the treatment applied, the schedule itself, the period's entry and who approved it.

An illustration of the record of the insurance prepaid schedule: the source document, invoice INV-29140 and the policy declarations; the service dates, 1 January to 31 December 2026; the treatment, a prepaid asset recognised straight-line under the prepaid policy; the schedule, twelve months of 20,000.00 with 180,000.00 left at 31 March; March's entry JE-4475; and its approval by Dana Ruiz, Controller, on 31 March.

Every recognised amount can be traced back to the document, schedule and accounting treatment that produced it.

The schedule keeps the balance explained.

Each month's prepaid balance stays tied to the document behind it, its service period, the treatment applied, what was recognised before, what is recognised now and what remains.

An illustration of 1500 Prepaid expenses through March's close: the balance compared with its four schedules; the contract amendment found and set aside for review; March's 33,750.00 amortization prepared on JE-4475; approved by Dana Ruiz and posted to Business Central on 31 March; and 1500 tied at 318,750.00.

  1. Reconcile

    Difference detected

    1500 against four schedules

    Reconcile accounts

  2. Investigate

    Cause established

    Halcyon amendment found · from 1 Apr

    Resolve close exceptions

  3. Adjust

    Accounting treatment prepared

    JE-4475 · 33,750.00 March amortization

    Current page

  4. Review

    Human approval

    Approved · Dana Ruiz · 31 Mar

  5. Post

    ERP updated

    Business Central · 31 Mar

  6. Verify

    Account reconciled

    1500 ties at 318,750.00

    Reconcile accounts
The productRebase Autonomous CloseReconcile accounts, investigate exceptions, prepare adjustments and move the close forward across the finance stack you already use.Explore Autonomous Close

Bring us a prepaid schedule your team maintains today.

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