Entering bills paid in monthly installments

Hi Lisapapa1173 , I suggest that a service purchase is recorded, using the invoice details, which may include interest charges. The purchase will remain in payables, and can be paid from there. The insurance charges are allocated to an expense account. You may then wish to transfer 11/12 of that to a prepayment (asset) account, and set up a recurring general journal to transfer 1/11th of that back to insurance expense over the next 11 months.

I'm not an accountant however this is exactly what I do. We premium fund all our policies as one monthly payment.

I enter the full amount as a service purchase, itemising the individual policies (there are 7) plus a line for the interest charge and save it as a recurring purchase.

I set it up as 12 transactions and then when using bank feeds allocate the payment to the open invoice.

I also have seperate accounts created for "Insurance Premium-Motor vehicle, Product liability, Property, etc....", "Broker's fee," "Stamp duty" and "Insurance Premium interest charge" and "Application fees".

It take's a bit of work initially however for the last 10 years the same Recurring Transaction has been edited as the renewal rolls over each Feb.