Coupa Prepaid Automation Process

To facilitate an improved and efficient process, the Accounting Team has implemented the automation of amortization entries. As part of the review/approval process of requisitions in Coupa, the FP&A Team will determine if changes are needed if the item is either a:

1. Prepayment OR
2. Deposit - which is any service charge that needs to be amortized/ capitalized according to Prepaid Expense Policy, or those that correspond to events or services that will occur in the future.

If the item is a prepayment or deposit, the FP&A Team will edit the Cart Items section as listed below:

1. Check the box Is this a prepaid? if the requisition needs to be treated as Prepaid.
2. If Is this is a prepaid? = Yes, then for the Amortization Schedule, select Prepaid Expense Amortization from the drop down list.

• Set the amortization period Service Start Date and Service End Date that matches the Prepaid Expense Policy or the future dates on which the event or service will occur. This determines the date on which this invoice will be booked as an expense. In case the dates have not been selected, Coupa will automatically fill these fields with the original date of the PO and this will have an impact on the corresponding month’s Budget.
  • The start and end date will delimit the amortization period of the invoice. Example: If you want to refer to an invoice that needs to be amortized over 1 year, the correct dates would be 4/1/22 to 3/31/23.

• Select the appropriate Commodity for this requisition.

View page source - Edit this page - please contribute.