Expenses

In Verasol, a business expense is entered as a bill from the supplier: the rent from your landlord, the electricity bill, a fuel receipt, a consultant's invoice. Each line goes to an expense account, so the cost lands in your profit and loss, the input VAT is recovered where the rules allow it, and the payment settles the bill like any other. There is no separate expense form to learn.

Where your expenses are#

Open Invoices › Purchase Invoices. Your expenses are there with your other bills: search by vendor or bill number, or filter by vendor and status. Verasol has no separate expenses menu or module: everything on this page is done with bills.

Enter an expense#

1. Open Invoices › Purchase Invoices and click Create Bill.
2. Choose the Vendor: the landlord, the utility, the shop or the consultant. Add a new one with the + next to the field (Add New Vendor).
3. Enter the Bill Date and the Vendor Bill Number from the invoice or receipt, and check the Supplier TRN.
4. Add a line for each cost and choose the Expense Account it belongs to, for example office supplies, telephone or fuel. When the Inventory module is on, choose Not a catalogue item (type the expense below) for a cost that is not in your catalogue, and type what it is.
5. Click Save Bill. The expense is saved as a draft.
6. Check the draft and click Approve Bill.

1 The expense line, 2 Approve Bill books it.

The full form, the bill types and the input VAT rules are explained in Purchase invoices (bills).

A receipt you paid on the spot#

Fuel, a taxi, a client lunch or a software subscription paid by card or in cash is still a bill, paid the same day:

1. Enter the receipt as a bill dated the day you paid, with the Due Date on the same day, and approve it.
2. Click Record Payment on the bill, choose Card or Cash as the Payment Mode and your company card or petty cash as the Bank Account.

The bill is then Paid, and the supplier, the VAT and the payment are on record.

1 The expense line, 2 the payment that settled it, 3 Fully Paid.

What Verasol books#

A fuel receipt of AED 437.00 including VAT, paid in cash from petty cash, gives two journal entries. When the bill is approved:

When the payment is recorded:

Account codes depend on your chart of accounts.

VAT you cannot recover#

Some expenses carry VAT that you may not recover, for example client entertainment. Set ITC Eligibility on the bill to Not Eligible: Verasol then books the VAT as part of the cost instead of as input VAT. The same happens by itself when the supplier is not VAT-registered or its TRN is missing. See Input VAT.

Expenses your employees paid#

When an employee pays a business cost with their own money, they claim it back. Enter the claim in Payroll & HR on the Reimbursements tab: it is approved, and paid back on its own or with the next payroll. See Loans and claims.

See where the money goes#

Open Reports and choose Expense Report by Category. For the period you choose, it shows every expense account with its number of transactions, the amount and its share of the total, from your posted entries. Click an account to see its transactions.

1 Expense Report by Category, 2 the period.

It opens on the last twelve months, from the first day of the month eleven months back to today. The report covers everything booked on expense accounts, including cost of goods sold, salaries and depreciation, not only bills.

Related#

• Purchase invoices (bills)
• Pay your suppliers
• Vendors
• Reports
• Loans and claims
• How VAT works in Verasol