How do I create an expense?

03 May 2021 KB00006


 

CLICK HERE TO SEE THE VIDEO TUTORIAL

 

You spend money to keep your business running. Buying stock, purchasing office supplies, and paying for advertising are some examples that need to be entered in the system as expenses.

 

  1. New Expense
  2. Fill out your expense
    1. Expense Details
    2. Amount
    3. Payment method
    4. Allocate expense to customer
  3. Expense Completed

 

1. New Expense

  1. On the top navigation bar, click on the + button.
  2. Select New Expense.

New Expense

 

Each section of the expense screen is explained below:

New Expense Screen

 

2. Fill out your expense

 

a. Expense Details

Expense Details

 

  • Expense # - This is an incremental number that is auto generated by the system. If you need to change the numbering sequence or prefix, click on the expense number.
  • Payment Date - The date that the expense was paid.
  • Category - Select a category you want to assign the expense to. The category is important for reporting purposes to see how much you spent on a particular category. e.g. how much you spent on advertising. If the category is not in the list, click on New Category to create one.

New Expense Category

  • Description - Optional. Enter comments to explain in more detail what this expense is for.
  • Vendor - Optional. Select the vendor to whom you are paying. Selecting the vendor is useful when purchasing stock. You will later be able to run reports to see how much you spent on a particular supplier (vendor).

 

b. Amount

There are 2 scenarios:

 

  • Your expense is in your local currency

Amount

    • Currency - Your default currency is automatically selected.
    • Excludes VAT / Includes VAT - Select whether the expense amount you will be entering is including VAT or excluding VAT.
    • Amount - Enter the amount of the expense in your local currency.
    • VAT Rate - Enter the VAT rate that you were charged. If there are multiple VAT rates, then click Add a Line, and add a line for each amount and VAT rate.

 

  • Your expense is in a foreign currency

Expense Amount Foreign Currency

In the example above, the local base currency is ZAR - South African Rand, and the expense is in a foreign currency USD - US Dollar.

    • Currency - Select the foreign currency. In this case select USD - US Dollar.
    • Excludes VAT / Includes VAT - Select whether the expense amount you will be entering is including VAT or excluding VAT.
    • Amount - Enter the amount of the expense in the foreign currency. The system will automatically convert it to your local base currency according to the exchange rate at the date of the expense. e.g. in the example above USD will be converted to ZAR. 
      • If you need to change the exchange rate, click on Edit Rate to enter another rate.
    • VAT Rate - Enter the VAT rate that you were charged. If there are multiple VAT rates, then click Add a Line, and add a line for each amount and VAT rate.

 

c. Payment method

Payment Method

 

  • Payment Method - Optional. Select the method that was used to pay the expense. e.g. Cash, Bank Transfer. This is useful for reporting purposes.

 

d. Allocate the expense to a customer

Allocate expense to customer

  • Customer - Optional. You can allocate this expense to a customer. This is useful for reporting purposes. You will be able to run reports of expenses by customer.
  • Billable - Optional. If you have selected a customer, you also have the option of marking this expense as billable to that customer. The next time you create an invoice for this customer, the system will let you know that you have expenses that you need to charge your customer for.

 

3. Expense Completed

Expense Completed