Omni – Prepayments
When carrying out any investment valuation, Omni can automatically produce prepayments for rent.
Any prepayments for other items would tend to be relatively small. These would generally only be considered if accounts are being produced. The user can make adjustments to the draft accounts produced by Omni for any other prepayments or accruals.
Rent prepayments are shown on the investment valuation if the ‘Rent Prepayments’ box is ticked on the main Rental Payments screen (via Direct Investments, Rent Payments).
The prepayment is calculated from the number of days from the date of the investment valuation to the end of the period covered by the rent.
a. Scheme year ends on 31st July – investment valuation at end of that day
b. rent of £10,000 is paid for 3 months from 25th June
c. rent covers the period to 24th September
d. number of days from 1st Aug to 24th Sept incl = 31 + 24 = 55
e. number of days from 25th June to 24th Sept incl = 6 + 31 + 31 + 24 = 92
f. prepayment = rent not earned = 55 / 92 x 10,000 = £5,978
See also - Accounting Basis.