Journal entries for an annual software subscription: the payment, then the monthly release, with the last month absorbing the rounding.
Arithmetic only — not tax, accounting, legal or investment advice. Check against current rules.
Prepaid software release: The payment debits prepaid expenses and credits cash, a card or payables; each month then debits the expense and credits prepaid. The release is even, in whole minor units, and the last month absorbs the rounding so the schedule ties.
Quoted from the toolbelt spec, the document this tool was built against.
Negatives are parenthesized because that’s what a statement does. The rest is four promises.
Amounts are integers in the currency's smallest unit, end to end. A float never touches a cent.
Rounded once, at the end. Rounding each operand is how a split stops summing to the whole.
The arithmetic lives in one unit-tested module, and the extension uses the same one.
There is no request to make. What you type stays in this tab and is gone when you close it.
A calculator answers the question once. These carry the answer into a product, name what it computed, and argue the method.
Worked example. Type over it.
Result
| Account | Debit | Credit |
|---|---|---|
| Prepaid expenses | 1,000.00 | |
| Cash | 1,000.00 |
| Account | Debit | Credit |
|---|---|---|
| Software expense | 83.33 | |
| Prepaid expenses | 83.33 |
| # | Date | Release | Prepaid left |
|---|---|---|---|
| 1 | 2026-10-31 | 83.33 | 916.67 |
| 2 | 2026-11-30 | 83.33 | 833.34 |
| 3 | 2026-12-31 | 83.33 | 750.01 |
| 4 | 2027-01-31 | 83.33 | 666.68 |
| 5 | 2027-02-28 | 83.33 | 583.35 |
| 6 | 2027-03-31 | 83.33 | 500.02 |
| 7 | 2027-04-30 | 83.33 | 416.69 |
| 8 | 2027-05-31 | 83.33 | 333.36 |
| 9 | 2027-06-30 | 83.33 | 250.03 |
| 10 | 2027-07-31 | 83.33 | 166.70 |
| 11 | 2027-08-31 | 83.33 | 83.37 |
| 12 | 2027-09-30 | 83.37 | 0.00 |
Cash leaves on day one and the expense arrives monthly. A company that expenses small prepayments as paid has a policy for that; ask your CPA.