---
title: "RRS — Inventory and prepaids"
sidebarTitle: "RRS inventory and prepaids"
description: "BK ending inventory, prepaid expenses, property tax, prepaid insurance, prepaid rent, and prepaid POS maintenance for Rackson Restaurants (E01)."
icon: "boxes-stacked"
---

> **For AI agents:** the complete documentation index is at [llms.txt](/llms.txt). Append `.md` to any page URL for its markdown version.

Six workpapers covering the RRS inventory valuation and every prepaid schedule.

<Info>
  **Source:** `Rackson_Workpaper_Instructions.docx` — Part I, Inventory & Prepaids.
</Info>

## 13000 — BK ending inventory

**Owner:** Maureen

Contains the RTI-exported ending inventory counts and costs by store and item for period-end valuation. Drives the inventory adjustment JE.

<Steps>
  <Step title="Roll the prior period forward">
    Copy / paste-special **values** from columns C & D into the prior period columns F & G on the **BK Ending Inventory** tab.
  </Step>
  <Step title="Export all inventory items ever counted">
    Go to **RTI → Other/Utilities → Export RTIconnect data**. Export **Inventory Items for All Stores** with a date range of **1/1/2023 to current** — this captures every item that has ever been inventoried. Open the export, remove duplicates, and sort by Item ID. Paste into columns C onward on the **Inventory Items** tab.
  </Step>
  <Step title="Map any new items">
    Any item returning an error in column B needs to be added to the bottom of the table on the **Inventory Consolidated $** tab, and assigned the correct GL code.
  </Step>
  <Step title="Export the period inventory">
    Back in **RTI → Other/Utilities → Export RTIconnect data**, export **Inventory for All Stores** for the period. Paste into columns A onward on the **Pd End Inventory Export** tab.
  </Step>
  <Step title="Refresh and scan">
    Refresh the table on the **ConsolidatedInventory Unpivot** tab, then scan the **BK Ending Inventory** tab for any large changes from the prior period.
  </Step>
  <Step title="Generate the estimated FCOS/GP">
    Open the **Prime Costs Report** — this generates the estimated FCOS/GP for the period on the **NOTES** tab.
  </Step>
  <Step title="Post the adjustment and tie out">
    Post the inventory adjustment JE in Intacct: DR/CR accts **50100** and **50400 / 50450** by location, to true up the GL to the physical count. Confirm the total GL balance for inventory accounts ties back to the workpaper total after posting.
  </Step>
</Steps>

<Warning>
  Stores marked **"Store Closed"** in column S should have zero balances. If count data appears for a closed store, exclude it and note the exception.
</Warning>

<Note>
  The **COS % Audit Report must be run only after this workpaper is posted** — its current period COS % will not be accurate until the inventory adjustment is in the GL. See [COS % audit report](/internal/customers/rackson/processes/cos-audit-report).
</Note>

## 14000 — Prepaid expenses

**Owner:** Betsy

Schedules all prepaid items charged to acct 14000 by vendor/service and tracks amortization.

<Steps>
  <Step title="Export the GL detail">
    Run the **YTD GL Detail** for acct 14000 from Intacct for entity RRS. **Remove the "Subtotal by Location" option.** Export to CSV.
  </Step>
  <Step title="Paste without overwriting beginning balances">
    Copy columns A through K into the **General Ledger Report** worksheet. **Do not overwrite the beginning balances highlighted in green.**
  </Step>
  <Step title="Resolve NA values">
    Check column L for any "NA" values. If a line with NA is not a total row, go to the **Cross Reference** tab and add the vendor or service name for that item.
  </Step>
  <Step title="Review each vendor balance">
    Confirm the period amortization (expense) has been posted. If a bill was paid this period, confirm it was coded to **14000 (prepaid)** and not directly to expense.
  </Step>
  <Step title="Amortize PTM Service Co">
    Amortize based on the contract period — current period amortization = **annual fee ÷ 13 periods**.
  </Step>
  <Step title="Tie to the GL">
    The ending balance per the workpaper must tie to the Intacct GL balance for acct 14000.
  </Step>
</Steps>

<Note>
  The reviewer's view of this workbook — including the **PTM by Location** SUMIFS mechanics and the actual/projected column layout — is on [Prepaid expenses review](/internal/customers/rackson/review-process/prepaid-expenses).
</Note>

## 14100 / 24200 — Property tax schedule

**Owner:** Maureen / Betsy

Tracks real estate tax bills by store, schedules monthly accruals (RJEs) by annualizing current bills, and reconciles the prepaid (14100) and accrued (24200) GL accounts.

<Steps>
  <Step title="Add new bills by billing month">
    When new RE tax bills are received, add them to the **All Stores** tab in the column for the **billing month — not the due date**. Highlight the amount appropriately.
  </Step>
  <Step title="Populate the GL balance tabs">
    At period end, populate the **14100** and **24200** tabs with current GL balances from Intacct's dimension balance report. Check for unexpected items.
  </Step>
  <Step title="Calculate the RJEs">
    RJEs are based on the annualized tax rate for each store: **total annual bill ÷ 13 periods**. This should not change unless a new bill is received or a rent increase takes effect.
  </Step>
  <Step title="Recalculate quarterly">
    At the start of each quarter (**P1, P5, P8, P11**), recalculate RJEs for all stores using the amounts in the All Stores tab **column V** (current annual total). Use the provided formula columns at the far right to update all stores at once.
  </Step>
  <Step title="Confirm posting">
    Confirm the recurring RJE was posted this period. If a bill was paid (DR 24200 / CR Cash), confirm both the payment and the accrual reversal are recorded.
  </Step>
</Steps>

<Warning>
  Tax **payments** are tracked by **due date** on the Cash Requirements schedule, not by billing date. Cross-reference the due dates in the workpaper against upcoming cash needs.
</Warning>

## 14300 — Prepaid insurance 2026–2027

**Owner:** Jeff

Amortizes the Intrepid insurance package (General Liability, Property, Umbrella, Auto) plus Workers Comp and other policies over their policy periods.

<Steps>
  <Step title="Confirm the RJE per policy line">
    Recurring expense amounts are pre-calculated in the workpaper by policy. The primary lines are General Liability, Property, Umbrella, and Auto — on the 06/23/25–06/23/26 policy year.
  </Step>
  <Step title="Record premium payments">
    When a premium payment is made, enter the amount in the **Act Pymt** row for the applicable column. The workpaper calculates the updated prepaid balance automatically.
  </Step>
  <Step title="Record endorsements">
    If an endorsement or policy change is received (mid-year additions such as new DHC stores or fleet changes), enter the adjustment in the **Adjust** row for the month received and note the endorsement details.
  </Step>
  <Step title="Tie to the GL">
    Confirm the ending prepaid balance agrees to the Intacct GL for acct 14300. A non-zero **DIFF TO RESOLVE** column indicates a timing or coding difference to investigate.
  </Step>
</Steps>

<Warning>
  **Workers Comp is now expensed directly through AP** — do not include it in the 14300 prepaid balance.
</Warning>

<Note>
  The carrier-by-carrier layout, the **85/15 allocation split** with the related theater-company entity, and the unsynchronized policy periods are covered on [Prepaid insurance review](/internal/customers/rackson/review-process/prepaid-insurance).
</Note>

## 14500 — Prepaid rent

**Owner:** Maureen

Tracks rent prepayments by store — some stores pay rent one period in advance (recorded as prepaid), and the RJE releases the prepaid to expense each period. Entry: **DR 70100 / CR 14500**.

<Steps>
  <Step title="Enter payments">
    For each store row, confirm whether a rent payment was made this period. If yes, enter the amount in the **DEBIT (Payment)** column for the current period.
  </Step>
  <Step title="Confirm the expense RJE">
    The **CREDIT (Expense – RJE)** column should match the periodic base rent amount. Confirm the RJE was posted in Intacct as a recurring journal entry.
  </Step>
  <Step title="Tie the running balance">
    The running **BALANCE** column at each period is the prepaid asset balance on the balance sheet. Confirm it matches the Intacct GL for acct 14500 at period end.
  </Step>
  <Step title="Handle rent increases">
    If a store has a rent increase effective this period, update the RJE amount and note the new lease commencement or amendment. Cross-reference the **2026 Rent Schedule** for current base rent by store.
  </Step>
  <Step title="Check negative balances">
    For stores several months into an advance cycle, confirm a negative balance trend is expected given the payment and amortization pattern.
  </Step>
</Steps>

**Files:** `1_-_2026___RENT_SCHEDULE_-_updated_as_of_P4.xlsx`

<Warning>
  Watch for stores that prepay **five to ten months** of rent in advance of opening. Confirm the expense is recognized in the correct period as each month passes, and that any **partial-period credit the landlord issues back** for a mid-period opening is applied rather than left sitting in the prepaid balance.
</Warning>

## 14600 — Prepaid POS maintenance (Xenial, Tillster, BKC Training)

**Owner:** Chee

Tracks subscription and license fees for **Xenial** (POS), **BKC Training**, **Tillster** (online ordering), **Stratacache**, and **RBI Managed Service Fees** by store, amortized over the subscription term.

<Steps>
  <Step title="Add new invoices">
    Review the **2026 POS Summary** tab for any new invoices received this period. If a bill is received, add the cost, term start/end dates, and annual amount in the appropriate vendor section for the store.
  </Step>
  <Step title="Confirm the amortization RJE">
    Per-period expense = **total contract cost ÷ number of periods in the term**.
  </Step>
  <Step title="Tie to the GL">
    Confirm the GL balance for acct 14600 agrees to the sum of all unamortized balances in the workpaper.
  </Step>
</Steps>

<Warning>
  **POS Prepaid is no longer maintained for new items after the PAR transition.** Existing balances continue to amortize down. The account will be retired when the remaining Xenial/Tillster balances fully amortize — confirm the expected run-off date with Mike and Chee.
</Warning>

<Note>
  This is a **separate workbook and GL account** from general prepaid (14000). The reconciliation mechanics, the blue-cell rule, and the required JE Review check are on [Prepaid expenses review](/internal/customers/rackson/review-process/prepaid-expenses).
</Note>

## Related

- [Inventory review](/internal/customers/rackson/review-process/inventory) — counted versus perpetual items and the count-scope change
- [Prepaid expenses review](/internal/customers/rackson/review-process/prepaid-expenses) — the 14000 and 14600 workbook mechanics
- [Accrued expenses and occupancy](/internal/customers/rackson/review-process/accrued-expenses) — property tax and percentage rent review