# Draft month-end accrual and prepaid journal entries with support

Turns invoices, contracts, and usage details into proposed accrual, prepaid, and reversal entries with the calculation behind each one.

- Topic: Finance & Accounting
- Framework: Few-Shot
- Level: Standard
- Tags: Finance, Write, Fill-in Template, Step-by-step
- Source: https://www.thinkwithprompt.com/prompts/draft-month-end-accrual-and-prepaid-journal-entries-with-support

## Prompt

```text
Help me draft month-end accrual and prepaid adjusting entries.

**Period closing:** [MONTH and fiscal year]
**Accounting framework:** [US GAAP / IFRS / other]
**Items to consider:** [PASTE - e.g. "utility bill for March not received yet, last 3 months avg $4,200", "annual insurance $24,000 paid Jan 1", "consultant worked 60 hrs at $150, not yet invoiced"]
**Relevant account names/numbers:** [PASTE chart of accounts extract]
**Materiality threshold:** [e.g. "we don't accrue items under $1,000"]
**Do we auto-reverse accruals next month?** [yes / no]

For each item:
1. Decide whether it is an accrual, a prepaid amortization, a deferral, or no entry needed (and why).
2. Show the calculation step by step, with the basis (actual, contract rate, run-rate estimate).
3. Propose the entry: date, debit account, credit account, amount, memo line.
4. Note whether it should auto-reverse and when.
5. Name the supporting document a reviewer would expect to see.

Rules:
- Never invent amounts. If an input is missing, mark it [NEED AMOUNT] or [CONFIRM ESTIMATE BASIS].
- Flag estimates that differ by more than 10% from the prior-month pattern I gave you.
- Flag anything that might be capital rather than an expense.

Return a table (Item | Type | Calculation | Dr | Cr | Amount | Reverse? | Support), then a short list of open questions for the preparer or budget owner.
```

## What to fill in

- MONTH and fiscal year
- US GAAP / IFRS / other
- PASTE chart of accounts extract
- e.g. "we don't accrue items under $1,000"
- yes / no
- NEED AMOUNT
- CONFIRM ESTIMATE BASIS

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