Prepaid expense is a payment made in advance for goods or services that are expected to be provided in a future fiscal year. For example, a $12,000 expense for hardware maintenance paid in January for service from January through December should use the Prepaid Expense detail code in Workday. The cost center is then charged as $6,000 expense in January of the current fiscal year and the remaining $6,000 expense will be charged in July of the next fiscal year.
Use Detail Code ‘Prepaid Expense’ to identify charges >= $5,000 that either a) span multiple fiscal years OR b) apply to a future fiscal year. The ‘Prepaid Expense’ Detail Code is a worktag in Workday. Often it is called out as a separate worktag otherwise it is found in the ‘additional worktags’ field in Workday processes.
If you have questions about prepaid expense please contact accountspayable@wpi.edu.