Q: What types of transactions should be classified as prepaids?

A: Prepaid expenses are any transactions that you have made and will receive a future benefit from. An example would be paying $120 for an annual magazine subscription. You should recognize an expense of $10 a month for 12 months, or each month you receive a magazine. This follows the accrual method of accounting where expenses are recognized in the period they are incurred.

Q: How do I record a prepaid transaction in Puzzle?

A: To record a transaction as a prepaid, go to the Prepaid tab on the Accounting page and select “New Expense” on the top right. From there, you will be able to either select an existing transaction from one of your integrated accounts, or manually add a transaction.

Q: How do I create the prepaid amortization schedule?

A: After you have located the prepaid transaction, select “Create Schedule” and input the required information like recognition type and start date.

Q: What information do I need to know to properly account for a prepaid transaction?

A: You will need to know the start date of the expense to ensure the expense is recognized in the proper period. Note, this will be different from the transaction date. An example would be renewing a software subscription in November, with the new contract starting in January. The start date would be January.

You will also need to know the length of time the expense covers. Is it 1 month? 6 months? A year? This information can be found either on the invoice or the receipt from the vendor.

You will add this information to the “Create Schedule” pop up.

Q: How does Puzzle know how much expense to record each month?

A: When adding the above information, Puzzle allows you to choose different duration options to recognize the expense: Accrue overtime with a start date and set duration, accrue overtime with a custom date range, recognize the expense on a certain date, and add the transaction in manually. Inputting this information will create the expense schedule.

Q: Can I make changes to the prepaid schedule after I submit it?

A: No, once prepaid schedules are submitted and finalized, they cannot be edited or changed. They can be voided, and you can recreate a new schedule for that expense.

Q: How do I void a prepaid schedule?

A: There are 3 dots on the far right side of the transaction. After clicking the 3 dots select “void”.

Q: How can I view all my prepaid expenses?

A: You can find a summary of your individual prepaid expenses on the Prepaids tab under “Summary”. You can toggle to the “Asset Rollforward” page which will show a view of your prepaid expenses by “Type” which can be clicked into for more details.

Q: Can I export my prepaid schedules?

A: No currently prepaid schedules can only be viewed in Puzzle. Users will be able to export their prepaid schedules soon.