Unpaid prepaid expense


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Hi
I have a question in regards to the prepaid expense.
I have an invoice from a client which need to book in Accounts Payable.
Invoice to be paid in Jan 2015 (Future)
Invoice is related to the expenses which will incur in 2015
But the invoice should be booked in Accounts Payable in 2014, so where I can debit the invoice ?
Since the invoice not yet paid how can I put it in prepayments ( Deferred) ?

Thanks
Shamsu
 
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bklynboy

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If no service was performed in 2014 or was paid in 2014 why record anything? Why the need to record a asset for something you have not paid or an expense for services not yet received?
 

Counterofbeans

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The million dollar question is why does it need to be recorded in AP...

If a company truly has a liability by contact or whatever at a date earlier than the date the services are expected to be received, yes, you can record such as a prepaid expense at the time the liability is set up.

It's unusual, but possible. I generally see this with insurance contacts
 
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Just record it using the dates in 2015 as if it is 2015 and treat the expense accordingly. No need to use 2014 at all.
 

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