Forum Discussion

Lisapapa1173's avatar
Lisapapa1173
Contributing User
8 months ago

Entering bills paid in monthly installments

 Hi   When we renew our insurances we pay this off in installments over the year.   Should this be recorded as a Spend Money transaction each time the installment is paid or enter the full amount...
  • Albare's avatar
    Albare
    8 months ago

    From what I know if entered as a recurring transaction you setup the number of times the transaction recurrs, e.g. monthly or for an actual number of times e.g. 12 times, and set up a reminder etc...

     

    However until you actually record a recurring transaction it doesn't "sit" within MYOB as an open bill. This might effect you with respect of claiming GST if you are on the accural tax method vs cash.

     

    I've set up some bills this way, that is one overall bill and made several instalment payments against it like Council rates, just have to remember when to pay them, but I use Outlook to remind me through Calendar reminders.

     

Mike_James's avatar
Mike_James
Ultimate Cover User

Hi Lisapapa1173 , I suggest that a service purchase is recorded, using the invoice details, which may include interest charges. The purchase will remain in payables, and can be paid from there. The insurance charges are allocated to an expense account. You may then wish to transfer 11/12 of that to a prepayment (asset) account, and set up a recurring general journal to transfer 1/11th of that back to insurance expense over the next 11 months.

Lisapapa1173's avatar
Lisapapa1173
Contributing User
8 months ago

Hi Mike 
Thank you for the quick response

Re, 'You may then wish to transfer 11/12 of that to a prepayment (asset) account, and set up a recurring general journal to transfer 1/11th of that back to insurance expense over the next 11 months.' ?
How to do that, Is any photo shot possible?
Thanks
Lisa

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