What is prepaid expenses in SAP FI-GL - General Ledger Accounting?

SAP Term: prepaid expenses

• Component: FI-GL

• Component Name: General Ledger Accounting

• Description: Assets paid for in advance of receiving their benefits, for example, research work or annual subscription for newspapers. In Russia, the amount of these costs is aggregated on special "prepaid expenses" G/L accounts. When the assets are used, their costs are written off to current expenses.

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• Key Concepts: 
  Prepaid expenses are payments made in advance for goods or services that will be received or used in the future. In SAP FI-GL General Ledger Accounting, prepaid expenses are recorded as an asset on the balance sheet. This means that the amount of the prepaid expense is recorded as a liability until it is used or consumed. 
  
  How to use it: 
  In SAP FI-GL General Ledger Accounting, prepaid expenses are recorded as an asset on the balance sheet. When a payment is made for a prepaid expense, the amount is recorded as a liability until it is used or consumed. When the expense is used or consumed, the amount is then recorded as an expense in the income statement. 
  
  Tips & Tricks: 
  It is important to track prepaid expenses in SAP FI-GL General Ledger Accounting to ensure that they are properly accounted for and reported on financial statements. It is also important to ensure that all prepaid expenses are properly documented and tracked so that they can be easily identified and accounted for when needed. 
  
  Related Information: 
  For more information about prepaid expenses in SAP FI-GL General Ledger Accounting, please refer to the SAP Help Portal or contact your local SAP support team.