Direct Debit Question (Quickbooks)

[trevorgoldon]

I am using Quickbooks and I have a £200 bill from October 2011 that I pay a Direct Debit of £20 each month, starting November 2011 through to August 2012.
I originally added the full amount as a bill in October 2011 and each month made a DD payment in quickbooks, it seemed to be working fine, it would leave the correct balance on the bill, but when I have come to look at the profit and loss for 2011/2012 instead of adding the 5 payments I've made up to April 2012 (£100) it has added the whole amount in October causing the profit/loss to be wrong.

What would be the best way for me to do this correctly in Quickbooks so I get the correct profit and loss for 2011/12.

Thanks for any help.

 

[Robert Pearce]

You can make a prepayment adjustment by posting the following journal (dated the end of March):

DR Prepayment £100
CR Relevant profit and loss code £100

From April onwards, you can then release £20/month back to the profit and loss account.

 

[trevorgoldon]

Could I put a separate bill in each month for each £20 Direct Debit instead of the one big bill?

 

[Robert Pearce]

Instead of the invoice/prepayment route, you could just post the monthly payment directly to the relevant profit and loss code.