How to Record Prepaid expense related to Employee and Amortize it?

If employee Iqama or any thing related to employee, needs to be recorded in pre-paid expense and then Amortize it at later stage, then do the following:

1. First record the entire Payment i.e., via Record Expense

DR = Prepaid Expense & CR = Bank

Now divide the Payment amount (without VAT) for the duration it was made for.

2.a. If Employee Expense Module is in scope, then record one portion or one month expense in respective date via Employee Expense, by selecting respective employee i.e., select Pay From = Prepaid Expense ledger (CREDIT). Select appropriate Pay Component which will DEBIT = Expense ledger.

(OR)

2.b. If Employee Expense Module not in scope, it can be done via Journal Entry for one portion or one month expense in respective date i.e., DR = Expense Leger & CR = Prepaid Expense Ledger and also enter details or narration in Memo as required.

3. Use Recurring Transaction module to setup 2.a or 2.b for remaining duration which it should amortize for future month.

Note: Refer below documents on

How to create Pay Component Setup

How to link Ledger to Pay Component Setup

How to use Recurring Transaction Module