NetClose - Amortizations Overview
Amortization is the accounting process of spreading an expense or revenue across the periods in which its economic value is realized. For most teams, prepaid amortization is a recurring close task, and tracking schedules across spreadsheets makes it easy to miss entries or carry stale balances forward into reporting.
The NetClose Amortizations module gives you one place to track every active prepaid, generate the monthly journals, and adjust schedules as terms change. Each amortization stores its remaining balance, remaining term, and the accounts the journal entries should hit. When loading pre-existing prepaids at go-live, enter the current balance rather than the original value, and the remaining term rather than the original term, so the schedule picks up from today.
There are four ways to create an amortization in NetClose, including auto-creating from the source transaction. Once schedules exist, you can run monthly amortization journals directly in NetClose. If you need to make any adjustments to your amortization throughout its term, the amortization module allows you to easily modify, transfer, or write off the amortization.
