Expenses

Record and manage immediate organization spending.

Interface Overview

Business Overview

Expenses represent money paid out instantly for goods or services (e.g., fuel, rent, utilities) without creating a prior Bill.

Actions

Recording an Expense

1. Go to Purchases > Expenses.
2. Click the Add Expense button.
3. Date: Select the date of payment.
4. Category: Select the Expense Account (e.g., "Office Supplies").
5. Paid Through: Select the Bank or Cash account used for the payment.
6. Amount: Enter the total value paid.
7. Tax: If applicable, select the tax rate included in the price.
8. Notes: Add a brief description of the spending.
9. Click Save Expense.

Viewing & Searching

• Use the Search Bar in the expense list to find entries by category or description.
• Filter by Branch or Date Range to audit specific spending periods.
• Click "View Detail" to see the full transaction impact on the General Ledger.

Expense Detail View

Complete expense details with payment information and accounting entries.

Overview Section

The expense detail view provides complete information about the expense:

• Header: Expense number, date, category, and status
• Payment Details: Payment method, bank/cash account, and amount paid
• Category & Account: Expense category and the ledger account affected
• Tax Information: Tax rate and tax amount (if applicable)
• Notes: Description of the expense for audit purposes
• Attachments: Digital receipts or supporting documents

Journal Entries Tab

The Journal Entries tab displays the accounting impact:

• Debit Entries: Expense account debited (e.g., Office Supplies, Rent)
• Credit Entries: Bank or Cash account credited
• Date & Reference: Transaction date and journal entry reference
• Branch Context: Shows which branch the expense was recorded in

Attachments Section

The Attachments section allows you to manage supporting documents:

• Upload Receipts: Add digital copies of physical receipts
• Supporting Documents: Attach invoices, contracts, or other documentation
• View & Download: Open or download attached files for review

Updating an Expense

1. Find the expense in the list and click Edit.
2. Modify the amount, category, or note.
3. Click Update Expense.
4. Note: Expenses can only be edited if they have not been reconciled in a bank statement.

Deleting an Expense

1. Locate the expense and click the Delete icon.
2. Effect: This removes the transaction entirely and restores the balance to the payment account.

Voiding an Expense

If you need to reverse an expense while keeping an audit trail of the mistake:

1. Open the expense detail view.
2. Click Void.
3. Enter the reason for voiding.
4. Effect: The entry is reversed in the current period, and the record stays in the system marked as "VOID".

Payment Recording

How Expenses Work

Unlike Invoices and Bills, Expenses are paid immediately at the time of recording. When you create an expense, the payment is recorded simultaneously - there is no separate payment step.

Payment Details

When recording an expense, you specify:

• Paid Through: The bank or cash account from which funds are withdrawn
• Payment Method: How the payment was made (Cash, Card, Bank Transfer, etc.)
• Amount: The exact amount paid
• Date: When the payment occurred

Payment Effects

• Accounting: Debits the selected expense account (e.g., Office Supplies, Rent) and credits the payment account (Bank/Cash)
• Immediate Impact: The payment is recorded instantly - no separate payment recording step is needed
• No Balance: Since expenses are paid immediately, there is no outstanding balance to track

[!NOTE] Expenses vs Bills: Use Expenses for immediate payments (fuel, rent, utilities). Use Bills when you receive an invoice from a supplier that will be paid later (Net 15, Net 30 terms).

[!TIP] Digital Receipts: You can upload a photo of the physical receipt to any expense record by clicking the "Attachment" icon in the detail view.