In this article you will learn how you can model Opex pre payments.
- Click in the edit mode of the concerned Opex Item on the Input field “Method of payment”. You will have the following 4 possibilities:
- Recurring Payment
- Recurring Pre Payment
- One-off Pre Payment
- In case of a One-off pre payment you can define the payment date.
- You have the option to work with relative date relations. For more information to relative date relations click here.
Example: In our case we model land lease costs in the amount of 5% of sales. The payment day is the start of the production of the first production unit (01.2017).
Graphically the pre payment looks like this:
Cashflow: The payment is made on 31.12.2016
Profit & loss: In the profit & loss statement the expenses are distributed over the lifetime (compare Start and End date) of the Opex position (5% of the revenue in each case).
Balancesheet: In the balance-sheet, the payment is activated on the prepayment account and is continuously reduced by the amount of expenses.