How to handle prepaids with Ramp

Rillet supports automated prepaid amortization, so as service periods are added to bills, the appropriate amounts will automatically be posted to the prepaid account. For more information on prepaids see this article:

📄 How to create a Prepaid Expense

Today, Ramp does not offer the ability to input service periods, so you will need to add the prepaid service periods once the Bill has been synced into Rillet

When classifying the invoice in Ramp, there are two methods used to update the Bills: (1) Prepaid Clearing Account or (2) Direct Expense Posting.

Prepaid Clearing Method (recommended)

To use this method, you will take the following steps:

1. Create a new GL for prepaid Ramp expenses where the account Subtype = Other Current Asset

2. When classifying Ramp Expense, select this GL Account and then sync the Bill to Rillet.

3. In Rillet, anything recorded to this account should be updated to include the correct Expense account and service period.

This methodology allows you to easily identify anything that needs a service period added in Rillet. When updating the service period on the Ramp charge in Rillet, you can also update the coding to the appropriate expense GL.

Direct Expense Method

When classifying the Ramp Bill, record the invoice directly to the expense account. Once the bill is synced to Rillet, then edit the Bill lines items to add the service period. The full amount of the bill will be recorded to the expense account until the service period is added in Rillet.