UK invoice posting

[maxl]

I have an invoice for £1000 relating to the next few 12 months.
I will pay for this invoice by direct debits for the next 12 months.
How do I correctly record this invoice?
It is not a prepayment but it is not either an accrual.
Maybe: DR Prepayment / CR Purchase Ledger
Then each month when the payment is taken: DR Purchase Leger; CR Bank
and Dr Expense / CR Prepayment ?

I guess this way the Assets in the Prepayment matches the Liability in the Creditors?

Thank you!

 

[kirby]

Depends what the invoice is for. Has the vendor earned their payment now or will earn it each of the next 12 months. For example, if vendor bills you now for a full year of - future hair styling - then RIGHT NOW you don't owe the full amount -so you don't record the full amount.

 

[internal auditor]

Dear,
Neither you have recieved services or supplies nor you have paid the amount so i think there would be no entry you should wait for direct debit and enter the transaction either from bank statement when you bank account is debited.

Regards,
Manzoor ahmed

 

[bookkeeping_monster]

Can you provide more detail to the question?

 

[gregorymorrill]

Its up to your decision and if it good to you.