Categorization of Expenditures for the Future Period

Ugur01 · ‎February 20, 2024

Hello,

The company will attend an Expo in 2024. The relevant invoice with participation fee belongs to 2023 and the invoice payment was made in 2023. However, as I mentioned before, the Expo will take place in 2024. For this reason, can we show the payment made in 2023 to the Expo as an expense in 2024's P&L? If yes, how?

Rainflurry · ‎February 21, 2024

@Ugur01

"can we show the payment made in 2023 to the Expo as an expense in 2024's P&L? If yes, how?"

Assign the 2023 bill to a 'Prepaid Expense' asset account (set one up if you don't have one). Then, when you actually attend the expo in 2024, move the prepaid expense to the desired expense account. You can do that a couple of ways: (1) make a journal entry: debit the desired expense account and credit Prepaid Expense or; (2) enter a $0 bill: list the desire expense account as a positive amount and the Prepaid Expense amount as a negative. Make sure the bill's total is $0. Either way works.

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ReymondO · ‎February 21, 2024

Hey there, @Ugur01. Thanks for sharing your concern on the QuickBooks Community page.

The option to display 2023 payments as an expense in the 2024 Profit & loss report is unavailable in QuickBooks. The way the system presents transactions is determined by their recording date.

I recommend reaching out to your accountant for potential workarounds, such as creating journal entries.

Moreover, you can customize reports in QuickBooks to display specific accounts or adjust the layout to ensure the correct data appears in the appropriate sections.

If you have any further questions about generating reports or managing transactions in QuickBooks, feel free to ask. I'm here to assist you. Have a great day!

Ugur01 · ‎February 21, 2024

Hİ @ReymondO,

Thank you for your reply. I can create journal entry if it solve my problem.

Best.

Rainflurry · ‎February 21, 2024

@Ugur01

"can we show the payment made in 2023 to the Expo as an expense in 2024's P&L? If yes, how?"

Assign the 2023 bill to a 'Prepaid Expense' asset account (set one up if you don't have one). Then, when you actually attend the expo in 2024, move the prepaid expense to the desired expense account. You can do that a couple of ways: (1) make a journal entry: debit the desired expense account and credit Prepaid Expense or; (2) enter a $0 bill: list the desire expense account as a positive amount and the Prepaid Expense amount as a negative. Make sure the bill's total is $0. Either way works.

Ugur01 · ‎February 26, 2024

Thank you very much for sharing your information with us @Rainflurry

Best.

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Categorization of Expenditures for the Future Period