Hi All! I have a customer that is not believing Amortization posting to Prepaids is correct according to GAAP. The theory, prepaids are a current assets, but the customer does not pay the expense bill for several months after the bill is posted. This would indicate an accrual of expense (hitting the balance sheet) until the invoice is paid. At the point the bill is paid, it would then begin to amortize with a catch up period. Simplifying the details: • Vendor bill received in October • Bill not paid until January • Per GAAP this is not a Prepaid event as it was not paid in the month it was posted to the ERP • Before NetSuite, manually accruing the expense; DR Exp; CR Cur Liability NetSuite Amortization • Vendor bill is posted and amortization applied • NetSuite posts: DR to Exp; CR to Prepaid (PPD) Cur Assets for the entire amount of the bill Manually the user could do a manual JE to move from PPD to Accrued Exp; however the amount in PPD is not only the monthly expense but is the entire Vendor Bill Amount. Thoughts on how to accomplish the ask systematically?

Thanks for sharing. This is good to know!

Your customer is right about the GAAP timing issue. NetSuite's amortization assumes you're prepaying, not accruing. Quick workaround: don't apply amortization schedules directly to unpaid bills. Instead, when the bill gets paid, create a JE that hits prepaids for the full amount, then let the amortization schedule run from there. Or use custom fields to track "paid date" and trigger amortization workflows only after payment posting. Bit more complex but keeps everything systematic.