Spreading a monthly bill for the purposes of reports

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I pay about $2500/month in rent, paid on the 13th of each month.  I also have a habit of doing short term profit and losses (e.g. one week) to check how business is going.

The problem is, the rent only shows up in the week it's paid, and then it shows up as a massive expense in that week which kind of skews the figures.

Is it possible to spread the expense over the whole month?  The only way I can imagine doing this is by dividing the yearly rent expense by 365 and creating a daily bill for that, but obviously that's a stupid way to do it and it'll congest the "Pay Bill" screen making it hard to find other bills when I need to...

Any other ways to do this?
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GoatyMcGoatBoat

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Posted 9 months ago

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Adrian

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Hello 

You could put the rent amount to a prepaid rent Current Asset.

Then set up a memorised weekly journal to dr rent expense and cr Prepaid rent.

Just may need to watch the amount you put in as some months will have 5 weeks and most will be four weeks. So may want to work out total rent for year then divide by 52 weeks to get a weekly amount not just go monthly divided by 4.


Adrian
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GoatyMcGoatBoat

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Thanks for the idea Adrian.

Will that skew balance sheet figures though?  By that I mean, wouldn't that asset show up on the balance sheet even though it doesn't really exist?

Thanks
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Adrian

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Hello

Yes It will show up on the balance sheet, you can't have it both ways.

You either want to smooth out the profit and loss and have a balance in the balance sheet, or you put up with one week having all the rent.

Adrian
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Jay Jay, Employee

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Hi GoatyMcGoatboat, 
As Adrian mentioned you can't have it both ways, but you can consider take the middle ground rather than make 365 daily bills, you can make 52 weekly bills, this might help. 
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GoatyMcGoatBoat

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Thanks, that's pretty much what I'm thinking of doing.

It won't work perfectly as the monthly amount that I pay won't always line up to the weekly amounts, but if I process the payment as the amount I pay I think Reckon will leave a balance on the last week's bill that will be picked up next time.. I hope.

I'll give it a crack later and see

Thanks

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