{"id":2388,"date":"2022-06-06T14:13:21","date_gmt":"2022-06-06T13:13:21","guid":{"rendered":"https:\/\/blogs.kent.ac.uk\/finance-news\/?p=2388"},"modified":"2022-06-06T14:13:21","modified_gmt":"2022-06-06T13:13:21","slug":"prepayments-clarification","status":"publish","type":"post","link":"https:\/\/blogs.kent.ac.uk\/finance-news\/2022\/06\/06\/prepayments-clarification\/","title":{"rendered":"Prepayments Clarification"},"content":{"rendered":"\r\n<p>We&#8217;ve had some queries about prepayments and we wanted to provide some clarification as to when they are needed and what they seek to achieve.<br \/><br \/>Simply put- <strong>a prepayment adjustment is needed when a payment has been made in advance for goods or services that have not yet been received<\/strong>. This adjustment will push the expenditure forwards so that it is recorded in the period it relates to. <br \/><br \/>In practical terms this means that cash expenditure can be incurred for a service that is for a future period but for financial accounting purposes this expenditure is offset against budget for that future period\u00a0 For example a subscription paid at the end of 21\/22 financial year might relate wholly (or partly) to the following financial year- this should be treated as a prepayment and accounted for in the following year (22\/23), which will be charged against that year&#8217;s budget.<br \/><br \/>We advise that prepayments are required for expenditure that is more than \u00a31,000 unless it is viewed as necessary by your division \/ department.<br \/><br \/>If you have any queries please contact the <a href=\"mailto:finrep@kent.ac.uk\">Financial Accounting team<\/a>.\u00a0<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>We&#8217;ve had some queries about prepayments and we wanted to provide some clarification as to when they are needed and what they seek to achieve. &hellip; <a href=\"https:\/\/blogs.kent.ac.uk\/finance-news\/2022\/06\/06\/prepayments-clarification\/\">Read&nbsp;more<\/a><\/p>\n","protected":false},"author":43739,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[262271],"tags":[],"_links":{"self":[{"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/posts\/2388"}],"collection":[{"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/users\/43739"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/comments?post=2388"}],"version-history":[{"count":6,"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/posts\/2388\/revisions"}],"predecessor-version":[{"id":2401,"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/posts\/2388\/revisions\/2401"}],"wp:attachment":[{"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/media?parent=2388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/categories?post=2388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/tags?post=2388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}