What happens to the Other Current Asset (OCA) account balance when you enter the final bill for vendor prepayments?

When the final bill for vendor prepayments is entered, the Other Current Asset (OCA) account balance decreases. This occurs because prepayments made to vendors are recorded as assets on the balance sheet until the goods or services are delivered. When the final bill is entered, it reflects that the promised goods or services have been received, which transitions the amount from being an asset to an expense. Thus, the OCA which held the prepayment value is reduced by the amount now needed to recognize the expense. This shift effectively reduces the OCA balance, as the prepayment is considered fully utilized at this point.