To facilitate an improved and efficient process, the Accounting Team has implemented the automation of amortization entries. The purchase process starts in Coupa and Requesters have been directed to submit prepaid purchases correctly using the Coupa Prepaid Automation Process.
The Requester must submit a Prepayment or Deposit (meaning any service charge that needs to be amortized/ capitalized according to the Prepaid Expense Policy or also those invoices that correspond to events or services that will occur in the future).
On a new Coupa requisition, the Requester will enter:
Sample Coupa requisition:
The selection/value entered on these fields will flow to the purchase order and down to the associated invoices.
Sample Coupa Invoice:
An additional approval group (Prepaids Approval Group) will be added into the workflow when the invoice is marked as Prepaid.
The Prepaids Approval Group verifies:
Amortization period (Service Start Date / Service End Date) must match the Prepaid Expense Policy or the future date on which the event or service will occur, determining 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 invoice and this will have an impact on the corresponding month's Budget.