- How does my accounting team deal with these lump sum recurring spend items?
- How can I handle a single recurring expense charge?
- how do I process recurring spend items?
The following article outlines how to process lump sum recurring spend items. There are two potential ways to process recurring expenses.
The accounting team can create one lump sum bill, and process the rest via journal entries in their accounting system.
The accounting team can take the lump sum amounts in the Accounts Payable section and split them for each bill they add. For example, for a $100 monthly subscription for 12 months:
- Select ACCOUNTS PAYABLE and CREATE BILL
- Select the +ADD ORDER ITEM button and select the checkbox beside the recurring item
- Under the Quantity, column enter a decimal amount that equals the monthly proportion. For a monthly, 12-month subscription, they would add 0.083 (1 / 12) as the amount to add to the unbilled items.
- Once you've entered the correct decimal amount select ADD UNBILLED ITEMS and finish processing the Bill. Each subsequent month, they will need to add another 0.083 quantity to the bill.