This article explains how to review and post your prepayments journal.

See how to set up journal options of your choice in How to set and change expense journal settings.  For example:

• journal at summary level (by default) - or choose to journal by supplier 
• include tracking codes, classes, locations - opt in to include this detail
• auto-selection - have ScaleXP select them for you - or choose to select transactions to include in your journals
• balance sheet mapping - choose which accounts to use for your journal postings.

Tip: Before posting your journal for the first time, we also recommend you see Prepaid expenses: best practices and quick start guide for tips on getting started and what settings are right for your situation.

Getting started

After setting up your expense settings as described in How to set and change expense journal settings, go to Select Prepayments to flag which bills should be treated as prepayments, confirm auto-selections, and select expense accounts where required.  See How to automate prepaid expenses: Setting up prepaid expenses in ScaleXP for more detail.

Note: In consolidated companies, the Prepayments Journal must be reviewed and posted at the subsidiary level, in line with the accounting connection.

How to post your journal

Go to the Journals tab and open Journal: Prepayments.   Ensure you are happy with the selected months to display; change at the top right if desired.

Any outstanding issues will be flagged at the top of the page.  Click View checks to see details of what to action.   Checks are resolved on the Select Prepayments page — see Why can't I post my prepayments journal? for the most common one.

Once you have resolved any outstanding issues, use the Post journal button to post directly to Xero or QuickBooks.

ScaleXP will propose an incremental journal, after taking into account any journals already posted for the month.

ScaleXP writes the journal directly to Xero or QuickBooks, dated to the current open period. The button label shows you which period that is — for example, “Post journal May 2026” if April 2026 is the last locked period.

Download the supporting detail using the Download button at the top right and attach it to the journal in your accounting system. For more on download options, see Prepaid expense download options.

Detail behind the journal

Section 1 is the suggested journal — the journal you actually post, and the only section that requires action. Sections 2 through 7 show how it is calculated and what sits behind it. Use Show / hide sections at the top left of the page to control which sections are displayed.

Section 2: Comprehensive journal shows the full set of journals ScaleXP expects to see in the month for the items selected for prepayment, excluding the impact of any previously posted journals.

Section 3: Journals already posted this month shows the previously posted journals impacting prepayments. This is subtracted from the comprehensive journal to produce the suggested journal in Section 1. It splits into 3a: journals posted in month and 3b: journals posted as late adjustments (entries dated to this month but posted later).

Section 4: How the numbers are calculated shows the elements which are used to produce the comprehensive journal and reconcile to recognized expenses. 

• Bills in the month, selected for prepayment — the invoiced amount of items selected for prepayment
• less: prepaid to the balance sheet — amounts moved to the prepayment balance sheet for future expensing
• plus: released as bills reach their expense months — amounts released to expenses from the prepayment balance sheet
• plus: accrued cost (incurred but not yet billed) — added to arrive at Cost recognized (for selected prepayments)

Further detail of each of these is provided in the available downloads.  See Prepaid expense download options.

Section 5: Balance Sheet Movements shows the expected opening balance, new prepayments in the month, amounts released to the P&L, and the closing balance. The closing balance here is what Section 6 reconciles to your accounting system, and equals the blue balances in Section 7 added together.

Section 6: Balance Sheet Reconciliation: ScaleXP v. Xero or QuickBooks compares the two systems. 6a shows prepayments as calculated by ScaleXP (the Section 5 closing balance), 6b shows the balance currently on your balance sheet in your accounting system, and Difference shows the gap by balance-sheet account — click it to see the breakdown by account. If the difference is not zero, see How to reconcile your prepayments balance with Xero or QuickBooks.

Section 7: Detail by supplier provides detail of the amount expensed in the month for each supplier selected for prepayment - this is shown in black.  It also shows the prepayment balance remaining on the balance sheet at the end of the month shown - this is shown in blue.   The totals in Section 7 match the ScaleXP totals for recognized cost in Section 4 and expected ScaleXP Balance Sheet totals in Sections 5 and 6.

Related articles

• For costs where the bill is expected but not yet in place, use cost accruals — see How to automate accrued cost journals . 
• For a full walkthrough of adding a manual bill, see How to add a missing bill or cost supplier.

See also:

• Prepaid expenses: best practices and quick start guide
• How to automate expense recognition journals in ScaleXP
• How to automate prepaid expenses: Setting up prepaid expenses in ScaleXP
• How to automate accrued cost journals
• How to review bills by issue month
• As spent versus IFRS / GAAP view
• How to add a missing bill or cost supplier
• How to set and change expense journal settings
• Prepaid expense download options  
• Why can't I post my prepayments journal?
• How to reconcile your prepayments balance with Xero or QuickBooks
• Why doesn't my prepayment balance sheet match?