Accounting for Prepaid Expenses | Excel, VBA & Power Query

Technical definition of Prepayments and Prepaid Expenses 

Practical example of prepaid accounting, Accounting journal entries as well Impact on Balance Sheet and Income statement (Monthly/Yearly) 

What are the major benefits of Prepaid Accounting and prepaid expenses and similarly what the major disadvantages of having high prepaid expenses in books of account (or in Business as general) 

What are the three types of Excel Models? What are the Functions will be used in preparing these PRO Excel Models? 

Complete Introduction to Date Function in Microsoft Excel with practical example ! 

EOMONTH Function is very useful Function, especially in all kinds of Business Modeling and Financial Modeling ! 

Quite useful Function while Excel Modeling, it converts texts showing in Date format (but not actual excel date), generally used to convert dates which comes  in reports from software and other application (text or csv files) 

The IF function is one of the most popular functions in Excel, and it allows you to make logical comparisons between a value and what you expect

The New Excel IFS Function is far more easier to read, write and understand. This video gives you complete introduction to IFS Function and how it works. Please note that IFS function is exclusive to Office365 subscribers for Excel 2016. 

VLOOKUP is a Function to lookup and retrieve data from a specific column in table. VLOOKUP supports approximate and exact matching, and wildcards (* ?) for partial matches. The "V" stands for "vertical". Lookup values must appear in the first column of the table, with lookup columns to the right.

The MATCH function searches for a specified item in a range of cells, and then returns the relative position of that item in the range. For example, if the range A1:A3 contains the values 5, 25, and 38, then the formula =MATCH(25,A1:A3,0) returns the number 2, because 25 is the second item in the range.

We will use this function to have dynamic column_index in VLOOKUP Function

Returns the reference specified by a text string. References are immediately evaluated to display their contents. Use INDIRECT when you want to change the reference to a cell within a formula without changing the formula itself. We will be using this function to create dynamic table_array in VLOOKUP Function

By using names, you can make your formulas much easier to understand and maintain. You can define a name for a cell range, function, constant, or table. Once you adopt the practice of using names in your workbook, you can easily update, audit, and manage these names.

We will be using Named Ranges with Indirect function to make Vlookup Function dynamic 

All formulas : Match, Indirect, Named ranges comes to gather to make VLOOKUP more powerful function specially in dashboards and reporting 

Control panel Tab is most important tab in the model, you have to update key inputs in this tab/sheet which will affect entire model's period and calculations 

Deep dive into model preparation, understating various dates function and how to automate date changes in model

Writing most important function of the model, IF or NESTED IF function. 

Model Finalisation and how to expand model to include more kinds of Prepaid Expenses 

In this Bonus Video, We will be using IFS function which is only available if you have Office365 Office 2016, to calculate prepayment amortization when we are assuming Month end date calculation for prepayment exps amortization. 

In this lecture we will go through step by step exercise of preparing dynamic Prepaid Expense closing balances summary sheet. This is important to analyse data and summaries all prepaid expenses each month. We will use DYNAMIC VLOOKUP Function in combination with MATCH, INDIRECT and NAMED RANGES. 

This Dynamic VLOOKUP Function is quite powerful formula which you can also use in all kinds of Summary Reports and Dashboards 

We will be using Excel's building Sheet Protection tool to protect all formula fields/cells in entire model (sheet). This will ensure that user can not accidentally delete any of our core formulas and break the model. We have to keep data inputs field/cells unlocked for key data inputs for the prepaid amortisation calculation. 

Brief Introduction about Exact date prepaid exps amortisation calculation. 

Changes in existing Formula Based Model that we have prepared in Section 4, We have to update our main prepaid exps amortisation formula and some other formulas to have model calculate exact prepaid exps calculation 

Wiring formulas especially main IF (Nested IF) function to calculate exact Prepaid Exps 

Finishing up the model for exact date prepaid exps amortisation 

In this bonus video, I will be showing you how to use IFS function instead of complex Nested IF formula for Exact Prepayment date amortization calculations. 

I will show you how to use data validations to make sure your key inputs cells are not filed up with accidental text or other kind of inputs (basically anything other than Date format) also we have to ensure that date input in Column C should be as per month end in Column

I have created new version of all Prepayment Models (Formula, Power query/PT and Excel VBA) with opening balances calculation. This two part of these videos, I will explain how exactly opening balance column formula works and how two write (nested IF Function). I also explain how you can use this version of model to review, analyse or Audit prepayment balances existing in business/Balance Sheet.

I have attached all versions of the models here in zipped file, Please download them all and let me know if you face any issues in using them! Cheers!

This video explains the exact formula which I have written to calculate Opening balances for each prepayment balance dynamically!

Brief Introduction to Power Query and Pivot Table Prepaid Summary Model

Power Query does not work with sheets with protection as the source file. So in this scenario, we will have to unprotect all individual prepaid expense sheets but in that case, there is change of accidental data errors due to inputs and formula corruption especially our main amortisation IF formula

We can use Array formulas instead, in this lecture I will show you how to write the (update existing) formula. Array formulas will provide some form of protection if not complete protection. 

How to allocate Prepaid Expenditure to various Cost Centres or divisions. Automatic allocation of Prepaid Exps to each division using Power Query.

In this lecture, we will prepare prepaid allocation table and integrate it with main data set summary of Prepaid Expenditures. The prepaid allocation table is simple excel table, which stores division wise ratio of allocations for each prepaid expenditures. If you want to change allocation to divisions or cost centers, just make the changes in allocation table, save the file and hit refresh....

I have updated this model with Opening balance column. Please refer lecture ____ for detailed formula explanation of the opening balance. Besides that I have updated Queries and Pivot tables to show more details in Summary Report.

VBA Coding enhances a lot of features in our existing Formula Based model, Let's go through the lecture and understand how VBA Coding works and you model becomes like a mini program! 

I have come across some issues with Excel VBA Model so I have made new version of Excel VBA  Exact Date Prepayment Model (see the resources in this video to download the model). This Bonus Lecture explains what was the problem and what changes are made in VBA codes to make the model more Robust!

This lectures shows you overview of the dynamic dashboard which we will be preparing in this section...

In this lecture, we will be importing source files/workbooks/worksheets: Divisional Profit and Loss statements for Division A,B and C into mail dashboard workbook, creating YTD versions of Divisional worksheets for three divisions....

In this lecture, we will create dynamic data validation, which will change according to Financial Year input in a cell... 

Lets create Named Ranges which are important for creating complete Dynamic Table arrays, this will be used along with INDIRECT function in VLOOKUP function.... 

Lets create dynamic column headings with help of year input cell from Dashboard sheet using Date Function and EOMONTH function for all Divisional PL Sheets including YTD PL

For first part of our Dashboard which are tables for Month and YTD data, we will create Dynamic headings with Text function along with & Joins (very useful trick) 

Lets write our main formula: Vlookup function along with Named ranges and Match function to dynamically pull data from Divisional PL Month and YTD Tables which are in different worksheet... 

Now lets create Second part of dashboard : Rolling monthly Dashboard with help of VLOOKUP function using Match and Indirect/Named Ranges, also adding IF Function to show data according to Date view selection

This is a PRO TIP and I use it all the time in preparing various financial or data modeling reports. Specially useful in Financial reports like Profit and loss/Income statements. In kind of error checks reinforces the confidence in our data and overall reporting/Dashboard accuracy... MUST USE tip

Now lets prepare data for Area charts visualization, also we will preparing separate tables/sections for these charts. Most importantly we will be using nifty trick using NA() function to avoid chart drop to zero for non data section...... MUST WATCH lecture

Lets visualize monthly permanence of each division with help of nice and clean Area charts.... using nifty trick of NA() to show data up to selected time period only....

Lets prepare Dynamic Donut charts showing share of Revenue, Gross Profit and Net Profit for each division. 

Continuing with our Donut Charts preparation, in this lecture we will be adding dynamic chart labels to add professional look and easy readability for the audience 

Introduction to formula less dashboard. Amazing dashboard techniques with the help of power query and Pivot tables.

Brief introduction and understanding of the data files we are going to use to build this fully dynamic and formula less dashboard.

Brief introduction to Power query and how to install it depending upon version of office and Excel you are using. We will consolidate reports for three division A, B, C

This trick is real life save while using power query, since power query always hard codes location of your data files/source files, it always pops up with error showing file path is missing or change, to get rid of this error we can use parameters query which will make file path and source folder path completely dynamic. Must know trick for Power query users.

Yes I did say it is formula less dashboard then why I am using an Excel Function, because Power query does not have ability to perform running totals on data columns especially complex conditional based running total. So we will be using only this formula (SUMIFS) to add a column which will also be a dynamic one.

In this lecture,  We will go through exercise where we will create conditional cumulative totals inside Power Query using custom M code/Power Query formula. This is bit advance but I have tried to explain you in easiest manner. This kind of calculation takes too much time to produce results so if you have large dataset, this trick is not advisable.

Lets start creating dashboard since our data set is ready. We will be creating a Pivot Table showing Month and YTD figures for divisions and with the help of month end slicer, you can view and display futures for each division month wise (based on your selection)

We will now create Pivot Donut charts and link them with the slicer of Pivot table we have created in previous lecture. I will show you quickest way to create and replicate same themed donut charts in this lecture (amazing time saving tip)

In second section of the dashboard, we will create line charts. Fully dynamic and progressive visualization of performance each month or period selection with help of slicers.

Is this a magic? how is it even possible? Refresh your dashboard with traditional reports and source data with two clicks only. Yes this is possible with magic of power query and pivot tables. Awesomeness, loving it!