ScaleXP uses text recognition to automate expense recognition, enabling you to prepay bills, add suggested accruals, and automatically release accruals when bills arrive — all in a few clicks. This article walks you through the four steps: review prepayments, post the prepayments journal, add accruals, and post the accruals journal.
Go to the Journals tab. The Month-End Check List lists every month-end task in order; the expense steps sit under 5. Prepayments and 6. Accruals.
In consolidated companies, run expense recognition at the subsidiary level, where the accounting connection sits.
Getting started
Open any expense journal task from the Month-End Check List (for example Journal: Prepayments). Use the three dots at the top right of the page to set up or change your settings for expense recognition.
Read more in How to set and change expense journal settings .
1. Review cost allocations for prepayment
Open Select Prepayments under 5. Prepayments. ScaleXP reads each bill and suggests which ones to spread over time; review the suggested allocations and adjust any start dates or periods. See How to automate prepaid expenses: Setting up prepaid expenses in ScaleXP
2. Post prepayment journal
Open Journal: Prepayments (or Journal: Prepayments by Supplier). Review the suggested debits and credits for the month, then post the journal to your accounting system. See How to automate your prepaid expense journal: review and post the prepayments journal
3. Add cost accruals
See Part 1 of How to automate accrued cost journals — review suggested accruals and add your own from the Add Accruals page.
4. Post accrued cost journal
See Parts 2 and 3 of How to automate accrued cost journals — check and update accrual releases from the Release Accruals page, then review and post your journal from the Journal Accruals page.
After posting and syncing, you can check any prepayment, accrual, or expense account balance by selecting the account row on the Reports tab to see the transactions behind it. See How to see transaction detail behind account balances.
Related articles
- Prepaid expenses: best practices and quick start guide
- How to automate prepaid expenses: Setting up prepaid expenses in ScaleXP
- How to automate your prepaid expense journal: review and post the prepayments journal
- How to automate accrued cost journals
- How ScaleXP will auto-match your cost accruals
- How and why to set an auto-release date for a cost accrual
- How to use ScaleXP for month end journals
- How to reconcile your prepayments balance with Xero or QuickBooks
- Why doesn't my prepayment balance sheet match?
- How to see transaction detail behind account balances
- How to set and change expense journal settings
- How to set up revenue recognition journals in ScaleXP