How to forecast a Rent Prepayment

You can forecast the Prepayment of Rent using FUTRLI’ Advanced Options. In this guide we’re going to be representing our Rent as being paid monthly on our Profit & Loss, but we’re actually going to be paying our Rent Quarterly, on the first day of each Quarter.

Written by Ross MacLeod

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You can forecast the Prepayment of Rent using FUTRLI’s Advanced Options. In this guide we’re going to be representing our Rent as being paid monthly on our Profit & Loss, but we’re actually going to be paying our Rent Quarterly, on the first day of each Quarter.

Forecasting a Rent Prepayment

Step One

First we need to create our initial Rent forecast. We’re going to do this by creating a new Forecast item against our Rent line for the appropriate Monthly value. In this example, we’re going to be using the Single/Repeating Entry method to forecast a monthly payment of £2500. We’re going to be entering this as a No Cash payment, and pushing the transaction to our Prepayments line on the Balance Sheet, which is where we’ll be handling the actual Payment. To do so, we need to ensure that VAT and our Credit Terms are set to zero. Then select Advanced Options from the bottom right of the window:

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Step Two

In the first dropdown we’ll be selecting No Cash as our option, and then we’ll be selecting our Prepayments line to be credited. Hit Save Changes to save:

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Step Three

Now we just need to enter our Quarterly Prepayment on our Prepayments line:

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