Prepayments workpaper (PPM)

The Prepayments (PPM) workpaper reconciles prepaid expenses, calculating the portion of a payment that relates to a future period.

Data extraction, from invoice

●        Prepayment Type: the expense category the prepayment relates to.

●        Amount: read from the invoice where available. Where no invoice exists, it's taken from the Xero GL instead. GST exclusive if the entity is GST registered, GST inclusive if not.

●        Service Period Start Date and Service Period End Date: both read directly from the invoice.

Data extraction, calculated from the GL

Where no invoice is available, the system checks the Trial Balance for expense accounts matching a keyword list: Rent, Insurance, Lease, Interest, Subscription. If any of these are found, a prompt asks: "Do you want to calculate Prepayment? Kindly check ATO Rules for Prepayments and Excluded Expenditure," with Yes/No options.

●        If No is selected, no further action is taken.

●        If Yes is selected, the General Ledger for that account is shown with a checkbox against each line item. The user selects which line items the prepayment applies to (multiple selections allowed), then enters a Start Date and End Date for each selected line, and the prepayment table is built from those inputs.

●        In this path: Prepayment Type takes the account name the user selected; Amount comes from the General Ledger; both dates are user-entered rather than read from a document.

Related workpapers

●        Trial Balance keyword matching here (Rent, Insurance, Lease, Interest, Subscription) is the same style of account-type detection used elsewhere in CoA-driven workpapers, worth being consistent with if this logic is reused.

How to access

●        Go to Jobs and open the relevant job.

●        Click the Workpapers icon or navigate to Job Results then Workpapers.

●        Select PPM on the Workpapers Dashboard.