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Prepaid expenses - category?

LyHoLyHo Member Posts: 1

Hi.

I'm having trouble how to categorise a prepaid expense. The prepaid expense is a $200 P.O Box rental.

Withdrawal - account "Statement"

Deposit - account "Prepaid P.O. Box Fees" (Vendor Prepayments and Vendor Credits)

What category should I be using?

in Accounting Technical Support

Comments

  • BarsinBarsin Member, Moderator Posts: 2,041 ✭✭✭

    Hey there @LyHo

    This all depends on what the service is for. I know some people would set up their chart of account (CoA) for postage/delivery or something similar. Ask yourself what is the service being used for and does something exist in my CoA already or should I add a custom category here?

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