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Prepaid amortization schedule instructions
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Last update: December, 1 2025
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This file is just for educational purposes and to show what a prepaid workpaper might look like.

Disclaimer: There might be formula mistakes and/or differences on how your company needs to account for certain prepaid expenses
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"Prepaid Expense Detail" Tab
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-All columns before the "Daily Amortization" column are hardcoded inputs that you must enter
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-When adding new rows be sure to grab all formula columns, starting with "Daily Amortization" and drag them down
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-The formulas do cumulative catch ups so you need to either 1) add the earliest period where there is amortization as a column or 2) hard code the first period with total amortization to date for each vendor
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-On the "beginning prepaid balance" row (16) you need to add the beginning prepaid balance amount to start a proper rollforward if you don't include all of the history
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-Note that at the bottom of the rollforward that there is an "unpaid invoices" row. For GAAP purposes (when you want to go through an audit), these should not be included in the prepaid balance. You can create a reversing JE to eliminate these each period
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Amortization Rules
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-The "Invoice GL Date" column determines when amortization begins
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-Amortization is done on a daily basis
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-A cumulative expense catch-up is performed if an invoice GL date is a month after the start date of the amortization period
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Journal Entry Tab
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-Everything should be automated from the Prepaid Expense Detail tab
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-If you need more columns in your journal entries then add a column and copy the formula as appropriate
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-You must update the date on the "Prepaid Expense Detail" tab" cell "A3" to the last day in the period being reconciled
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