Hi, 

I am trying to find information on Prepaid Liability Accounts.

We are a marina and have Annual, Semi Annual customers that get billed the full amount. When we receive the funds we set up a liability account so that we can allocate the income over the 12 month or 6 month period. 

We do a sales receipt to set post to liability account when the payment is received. Then create the monthly invoice per their 12 or 6 and set up recurring to pull over from liability to offset the monthly payment. 

Is the customer entitled to know that we set up a liability account or receive a statement?