Problem: How to reflect Prepaid Expenses in the software?
Solution: In order to reflect Prepaid Expenses in the software, please follow the steps below:
A prepaid expense is an expense that has been paid for in advance but not yet incurred. In business, a prepaid expense is recorded as an asset on the balance sheet that results from a business making advanced payments for goods or services to be received in the future
1. Creating a new account to separate it from other current assets GL.
To create a new GL, kindly refer to the link 7.2.1.1. Adding an Account to COA
2. Record the entry of the payment using Bank Payment, with transaction type Others.
Fill the fields with required details.
At the Payment Details tab, chose the new created GL Prepaid Expense and the Item.
The entry will create a Journal entry of: Dr Prepaid Expense
Cr Bank 
See also 6.2.2.9. Bank Payments (Other)
3. As the advances are already recorded, the expenses which will be incurred every month need (to be recognized every month) to accurately maintain the accounts. There is no direct way to do this entry, therefore, we will use this manual entry document Transaction general ledger. Specify the debit and credit accounts, item.
NOTE Please use the document with caution, should be used only when advised by Hotline.
In the Debit side, record the GL Expense Account, and for Credit side, choose the GL Prepaid Expense.
Fill the data as shown in the below screenshot:
See also 7.5.6. Transactions (General Ledger)
4. To distribute this expense, record Manual Cost Allocations. It is created when you need to manually distribute the overhead costs or Income. In the below example, new GL is different, selected profit and loss as shown and rest of the details are same i.e. Department and expense analytics. The below case will create the entry
To access the Manual Cost Allocations list, select Accounting > Service Tools > Manual Cost Allocations.
DR Profit and Loss
CR Other Operating Expense
See also 7.5.1. Manual Cost Allocations
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