Other expenses

If you’ve made a payment for something but you haven’t received an invoice from a supplier, for example because you bought something over the counter, you can easily record this as an other expense.

To record other expenses

  • 1. Expenses > Other Expenses.
  • 2. Box 1 > complete the following information:
Payment Method* Choose the payment method for the expense. This affects which bank accounts you can choose from.

* Bank Payment – Use this when you pay money directly from your bank account.
* Cash Payment – Use this when you make a cash payment.
* Credit Card Payment – Use this when you pay by credit card.
Type of Expense* Choose the type of expense for the payment. This may affect which VAT rate applies to the transaction.
To create a new type of expense, choose Create new… > enter a name for the expense > select Default VAT Rate > select Category account type > Save.
Tip: Direct expenses are costs associated with making a product or providing a service. For example, material and packaging. Overheads are expenses involved in running your business. For example, rent and wages. If you’re not sure which category to choose, you should check with your accountant.
Payment Date* Enter the date of the payment.
Invoice Date* This only appears if you’re VAT registered. The payment date automatically appears; if necessary, you can enter a different date.
  • *These details are compulsory.

If your payment includes more than one expense type, you must post a separate payment for each expense.

  • 3. Box 2 > complete the following information:
Name If the expense is for an existing supplier, enter the name > click the contact. To quickly create a new supplier, click > complete the information > Save.
Reference Enter a reference for the transaction.
Bank A/C* Choose the bank account you’re paying the money from. The choice of bank accounts depends on the payment method.
  • *These details are compulsory.
  • 4. Box 3 > complete the following information:

The VAT options only appear if your company is VAT registered.

Total * Enter the total amount of money for this transaction.
VAT Rate* Choose the VAT rate for the transaction.
Tick if Total includes VAT If the total amount includes VAT, to automatically adjust the amount of VAT, select this check box.
  • *These details are compulsory.
  • 5. Click Save.

You’ve successfully recorded the expense.

To refund other expenses

If you need to record a refund of an other expense you’ve already recorded, for example because you bought an item over the counter then later returned it because it was faulty, simply follow the steps above but record the refund amount as a negative value. This adjusts your profit and loss report, your bank account and if necessary, your VAT Return.

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