openerp-expert-accounting team mailing list archive

[Frédéric Clementi <frederic.clementi@xxxxxxxxxxxxxx>]

>  Hello
>
> "Pre-payments transactions differ from cut-off issues" means that one
> (the accountant) needs to make two distinct tasks:
>
>    - account for what is to be recognized as a pre-payment transaction
>    with a partner, thus using or not standard A/R accounts -depending on local
>    accounting requirements  if any - This a purely financial transaction
>    involving B/S accounts, at the exception of any P/L account.
>
> yes, but you will agree that it is pointless to use a prepaid (B/S)
account if the payment not related to an expense/revenue that can be split
into 2 fiscal year.

>
>    - at the closing of the considered period ensure that accounted costs
>    and revenues belong to this period (the cut-off accounting process). When a
>    cut-off needs to be done for a sincere accounting , then the accountant
>    will use pre-paid or accrual accounts to transfer that part of the
>    costs/revenues to the following period(s).
>
> Yes exactly. accrual accounts AND prepaid.

Thanks

Frederic