Create an amortization template

Create an amortization template to define how prepaid expenses are recognized over time for bills and Purchasing transactions. Templates support both Straight-line prepaid expense amortization and Deferred adjustments for charges constatées d'avance (CCA).

For detailed information about template fields, see Amortization template field descriptions.

Custom accounting periods are not used when calculating amortization schedules. Schedule dates are based on calendar periods (monthly, quarterly, or annually), so they might not align with your accounting period end dates.

Subscription

Accounts Payable

Regional availability

All regions

User type

Business
Permissions

Accounts Payable

  • Amortization template: List, View, Add
Configuration

Prepaid expense amortization must be enabled in Accounts Payable configuration.
  1. Go to Accounts Payable > Setup and select Add (circle) next to Amortization template.

  2. Enter a Template ID.

  3. For Amortization method, select one of the following:

    • Straight-line: Spreads the prepaid expense amount evenly across the amortization schedule.

    • Charges constatées d'avance (CCA): Creates deferred adjustment entries for the unexpired portion of the expense at the end of each schedule period. This method is typically used for France-specific requirements.

  4. Optionally, enter a Description.

  5. Optionally, enter a Number of periods.

    If you enter a value, Sage Intacct uses the number of periods to calculate the amortization schedule and ignores the amortization end date on the transaction line.

    This field is available only for the Straight-line method.

  6. Select an Amortization journal.

    If a default journal is set in Accounts Payable configuration, it appears automatically and you can accept it or select a different journal.

  7. Select a GL account.

    The account that Sage Intacct uses together with the transaction line account when creating schedule journal entries from this template. The account's purpose depends on the selected amortization method.

    • For the Straight-line method, select the expense account used to recognize the prepaid expense over time. Schedule entries debit this account and credit the transaction line account.

    • For the CCA method, select the deferred adjustment account that holds the unexpired portion of the expense at the end of each schedule period. Deferred adjustment entries debit this account and credit the transaction line account. The entries are reversed at the start of the next period.

    Select an active GL account that's not associated with a bank account or credit card account. You cannot change this field after you save the template.

  8. Select the Schedule period.

    The schedule period determines how often schedule entries are created. For CCA templates, it also determines when deferred adjustment amounts are calculated.

  9. Select a Posting day.

    The posting day determines when schedule entries are posted within each schedule period.

    This field is available only for the Straight-line method. CCA schedules always post at the end of the schedule period.
  10. Set the Status to Active.
  11. Select Save.