Prepaid Expenses

StuartBlackStuartBlack Member Posts: 3

I have a product that I digitally pay for an account balance, then buy different services from that account balance.

Money leaves my account when I fund the supplier account, then when someone purchases an item from me, i need to process that somehow in the accounting.

Can someone help me with the way i should process this

Kind Regards
Stuart

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  • TylerKTylerK Administrator Posts: 105 admin

    Hi @StuartBlack!

    Definitely sounds like a bit of a nuanced workflow here. We have this guide for pre-paid income but it's not quite applicable as you are making payments, not receiving them.

    In your Wave account, you can create Bills which will record the liability that will one day be paid off (this leans heavily on accrual-accounting principles) but even then, Wave does not have an inventory tracker which also kind of sounds like what you are looking for here. Thoughts?

  • StuartBlackStuartBlack Member Posts: 3

    Hey @Tyler

    The way I see it is that the money paid to the supplier is an asset until used. so possibly stock on hand. But my problem is that that Stock only has a bulk value and not a quantity, because it depends on what services my Customers purchase.

    I thought about loading it as stock, but cant wrap my head around how it all ties together.

    I will just carry on with how I am doing things at the moment, creating a bill as a "Cost of Goods" as a once off transaction, until I need to increase the account again.

    Just that there is no way from me looking at the accounting to know when I need to top up the account

    Thanks for the help.

    Will look out for stock feature in the future possibly.

    Kind Regards
    Stuart

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