Expenses
Record what each firm spends, such as rent, petrol, salaries and freight, paid from that firm's own bank or cash.
/accounts/expensesExpenses is the register of what the firms spend. Each expense is charged to an expense account, its category, and paid from the same firm's bank or cash. Reps' daily spend is not recorded here: it is paid on Staff claims.
Record an expense
Open the form
Open Expenses and select New expense.
Choose the firm
Choose the Firm whose books the cost belongs in. It is asked for every time, even when the page shows one firm, because it decides which accounts can pay it.
Fill in the expense
| Field | What to enter | Required |
|---|---|---|
| Date | The day it was paid | Yes |
| Spent on | The category: one of the firm's expense accounts | Yes |
| Paid from | The firm's bank or cash account that paid it | Yes |
| Amount (₹) | What was paid | Yes |
| Paid to (optional) | The landlord, the petrol pump, the transporter | No |
| Bill or reference no. (optional) | The bill number, UTR or cheque number | No |
| Note (optional) | Anything else | No |
Record it
Select Record expense. It takes the next number in the firm's expense series.
You can't pay one firm's expense from the other firm's bank or cash. If the other firm paid, move the money between the firms with a transfer on Cash & Bank first.
Categories
The categories are the firm's expense accounts, direct and indirect. Every firm starts with Salary, Rent, Petrol, Tea & Refreshments, Transport & Freight Outward, Printing & Stationery, Telephone & Internet, Electricity and Office Expenses. Add a category with New account in Accounts → Setup → Chart of accounts, or switch one off there. A switched-off category is no longer offered for new expenses, but its old ones stay on it.
A discount you give a party when they pay is not an expense here. It is recorded on the receipt itself, as Discount allowed, so it stays with the bill it settled. See Payment-In.
Find an expense
The list opens on this month's standing expenses. The total at the top is what was Spent in the period.
- Change the period with the date pickers, or with This month, Last month or This year.
- Filter by Category. The list groups categories by firm and includes switched-off ones, marked "(switched off)", because a category retired in June may still have May's rent on it.
- Switch between Standing and Cancelled.
- Search by expense number or by who was paid.
| Column | What it shows |
|---|---|
| Date | The day it was paid |
| Expense no. | Its number, with a tag for its firm |
| Category | The expense account it was charged to |
| Paid to | The payee, with the reference and note |
| Paid from | The bank or cash account that paid it |
| Amount | What was paid |
| Status | ISSUED or CANCELLED |
Open an expense by its number to see everything recorded on it and who recorded it. In the books says which account was debited and which credited, and View entry opens the entry itself.
Cancel an expense
An expense is never edited or deleted. To undo one, select Cancel on its row in the list, or Cancel expense on its page. Write a Reason of at least three characters and confirm with Cancel expense.
- The expense keeps its number and shows CANCELLED, with who cancelled it, when, and why.
- Its entry in the books is reversed, so the amount goes back into the bank or cash account that paid it. View reversal on its page opens the reversing entry.
To correct an expense, cancel it and record it again.
Good to know
- You can't date an expense on or before the day the firm's books are closed after a GST filing. If you cancel an expense from a closed period, the reversal is posted today instead. See Setup.
- Expenses show on the Profit & Loss under direct or indirect expenses, depending on the category's group.
- The Accountant (read-only) sees the register and every expense, but not New expense or the cancel buttons.
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