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May 16, 2017/. Prepaid dues are fees paid to a membership organization, covering a time period that has not yet expired. The amount of these dues is recorded in a current asset account (such as prepaid expenses or a separate prepaid dues account). As each successive month in the coverage period expires, a proportionate amount of the prepaid dues is charged to expense.
There is a difference between prepaids and closing costs. Closing costs is the general term used to describe all of the fees or charges for actions or items related to originating and closing on your mortgage. These can include payment to title companies, government offices, or even the mortgage lender itself.