What is the difference between Deferred Expenses and Prepayments?
Deferred Expenses
Deferred Expense postings occur when expense for a future period has been invoiced (A/P) in a prior period. Deferred Expense is created at invoice posting.
Prepayments
Prepayments occur when the Payment is posted in a period prior to the A/P posting period. Prepayments are created at payment posting.