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Record an expense

Record a cost that has no purchase order, code it to an account, say how it was paid, and keep the receipt.

Inventory & purchasingUpdated 07/10/2026 · 2 min read

In this article

Record an expenseWhat this does to stock and the ledgerWhere it sits in the chainFAQ

Before you start

  • A vendor in Vendors if you want the cost linked to one.

Record an expense

Open Purchase › Expenses 1. The tabs 2 group expenses by state.

The Expenses list with its tabs, the Upload receipts button and the Record expense button
  1. Expenses
  2. Tabs: All, Draft, To reimburse and more
  3. Record expense

Click Record expense 3, or Upload receipts to capture a receipt first and code it later.

Enter the Date, say how the amounts are entered under Amounts are, and choose the Expense account 1. Enter the Amount.

The expense details with Date, Amounts are, Expense account and Paid through
  1. Expense account
  2. Amounts are
  3. Paid through

Choose Paid through 3: Bank account, Petty cash, Corporate card or Employee (reimbursable).

Under Vendor document, pick the Vendor 1, the Reference # from their invoice or receipt, and the TRN on the document 2.

The vendor document card with Vendor, Reference number and TRN on the document
  1. Vendor
  2. TRN on the document

Attach the receipt, check the Document total, and save.

Amounts are: VAT 5% exclusive
Meaning: The amount you enter is before VAT.
Amounts are: VAT 5% inclusive
Meaning: The amount you enter already includes VAT.
Amounts are: Out of scope
Meaning: No VAT.
Amounts are: Reverse charge (import)
Meaning: You account for the VAT yourself.
Status: Draft
Meaning: Captured and not coded yet, for example from an uploaded receipt.
Status: Recorded
Meaning: Coded and posted.
Status: Pending
Meaning: Not paid yet. See Pending payments.
Status: Paid
Meaning: Settled.
Status: To reimburse
Meaning: An employee paid and you owe them the money.
Status: Reimbursed
Meaning: You have repaid the employee.

What this does to stock and the ledger

An expense changes no stock. If you buy goods to hold, use a purchase order and goods receipt so the quantity and its value are recorded. Recording debits the expense account (and 1455 VAT Input - Recoverable where the VAT is recoverable) and credits 2101 Vendor Payables. Marking it paid debits 2101 and credits the account you paid through. An employee-paid expense credits 2104 Employee Reimbursements Payable instead, until you repay it.

Tip — Editing or deleting a recorded expense posts a reversal of the original, so your books stay correct.

Where it sits in the chain

An expense is the short route through buying: Vendor, then Expense, then Payment, with no order, no goods receipt and no bill matching. It sits beside the purchase order chain and ends in the same place, the vendor payable and the account you paid through. Pending payments lists what is still to pay.

FAQ

When do I use an expense and when a purchase order?

Use a purchase order when you order goods and want approval, receipt and bill matching. Use an expense for a cost you already paid or owe with no order.

Where do I see what I still owe on expenses?

Open Pending payments from the Expenses screen. It lists the expenses that still need paying.

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