Prepaid & deferred release
A premium paid on the 17th does not release in twelve equal slices. Day-weighted, or even — your call.
- Runs
- In this tab
- Data sent
- None
- Rounding
- Once, at the end
- Also in
- The Chrome extension
Prepaid & deferred release, worked
Showing a worked example — type over it
Result
How the prepaid & deferred release works.
Prepaid amortisation even, or by days split at calendar month-ends.
Quoted from the toolbelt spec, the document this tool was built against.
Where these numbers come from.
Negatives are parenthesised because that is what a statement does. The rest is four promises.
Minor units, never floats
Amounts are integers in the currency's smallest unit, end to end. A float never touches a cent.
Rounded once
Rounded once, at the end — never per operand, which is how a split stops summing to the whole.
Unit tested
The arithmetic lives in one unit-tested module, shared without reimplementation with the extension.
No network
There is no request to make. What you type stays in this tab and is gone when you close it.
More in schedules that tie
- Depreciation scheduleStraight-line, declining balance or SYD, with the convention that decides the first period.
- Loan amortisationLevel payment solved, then walked in minor units so the last payment clears the balance exactly.
- Lease — ASC 842 / IFRS 16PV of the payments at your IBR, the liability unwind and the ROU asset — straight-line for a finance lease, the plug to a level cost for an operating one.
Read it in context
- Founder guide · 5 minCash flow statement explained: why profit isn’t cashHow the cash flow statement starts at net income, adds back non-cash costs and working capital, splits three activities and ties to the balance sheet.
- Founder guide · 4 minWhy startups should close their books every monthA monthly close turns a bank balance into numbers an investor, an auditor or a 409A firm will accept. What it is, and why it gets expensive to skip.
- Founder guide · 5 minForm 1120: what to give your tax preparer, and whenWhat a startup hands its tax preparer for Form 1120: closed books, a balance sheet that ties to Schedule L, book-to-tax items, ownership and 1099s.
The same number, elsewhere.
A calculator answers the question once. These carry the answer into a product, name what it computed, and argue the method.
- ComponentScheduleTableOne shell, seven presets. Prepaids through debt.
- ComponentSchedulePreviewWhat the schedules will post, before they post.
- ComponentRevenueWaterfallDeferred balance recognizing by future period.
- TermDeferralCash paid or received ahead of the expense or revenue it relates to, held on the balance sheet — as a prepaid or deferred revenue — until consumed or earned
- TermAccrualAn expense incurred, or revenue earned, before it is invoiced — recorded at period end so it lands in the right period
- TermRoll-forwardOpening → movements → closing, proven
- TermDeferred revenueConsideration received, or unconditionally due, before the goods or services are transferred — a liability until the performance obligation is satisfied. ASC 606 calls it a contract liability
- TermPrepaid expenseCash paid before the benefit is consumed — an asset until it is
- TermAmortizationSpreading the cost of a finite-lived intangible, a prepaid or a debt discount over the periods it serves
- DocSchedules, accruals & roll-forwardsThe supporting evidence layer. Every balance sheet account needs a schedule behind it, and the schedule must tie.
- EntryJournal entry for prepaid insuranceWhen the premium is paid, debit Prepaid insurance and credit Cash. At each month-end, debit Insurance expense and credit Prepaid insurance for the month's share of the policy, until the prepaid balance reaches zero.
- EntryJournal entry for prepaid rentWhen rent is paid in advance, debit Prepaid rent and credit Cash. At each month-end, debit Rent expense and credit Prepaid rent for the month the space was used.
- EntryJournal entry for a prepaid software subscriptionWhen an annual software subscription is paid up front, debit Prepaid software and credit Cash (or Accounts payable). Each month-end, debit Software expense and credit Prepaid software for the days of service used that month.
- EntryJournal entry for deferred revenueWhen an annual contract is invoiced up front, debit Accounts receivable and credit Deferred revenue. As each month of service is delivered, debit Deferred revenue and credit Revenue for that month's share.
- DocCurrency decimal placesHow many decimals each ISO 4217 code is stored at — JPY 0, USD 2, KWD 3.