Expense Management

Common Tasks

How to Record an Expense (Record Expense, Create Expense Bill)

Record expense bills in the Expenses module. This is separate from the Accounting module - use Expenses to record bills, and Accounting to view reports and manage accounts.

Method 1: Process an Expense Bill with AI (AI Process Bill, Upload Receipt)

Use AI to automatically extract information from a bill or receipt image and create an expense record.

1. Go to Expenses in the left sidebar (not Accounting)
2. Click the AI Process Bill button in the top-right corner
3. Click Upload File or drag and drop a bill or receipt image (PDF, PNG, or JPG)
4. Wait for AI processing to complete (usually takes 10-30 seconds)
5. Review the extracted information:
   • Amount - Total expense amount
   • Supplier/Vendor - Vendor name
   • Date - Bill date
   • Category - Expense category (AI suggestion)
   • Description - Notes or item details
6. Correct any errors in the extracted fields
7. Select the Account from the chart of accounts if needed
8. Select the Tax Code if applicable
9. Click Save Expense

Result: An expense bill record is created and automatically posted to your accounting system. The receipt image is stored with the record for future reference.

Method 2: Create an Expense Bill Manually (Create Manually, Add Expense)

Manually enter an expense bill when you don't have a receipt image or need to record expenses immediately.

1. Go to Expenses in the left sidebar (not Accounting)
2. Click the Create Manually button in the top-right corner
3. Enter the Amount of the expense
4. Select or enter the Supplier/Vendor name
5. Enter the Bill Date (defaults to today)
6. Select the Category from the dropdown:
   • Rent
   • Utilities
   • Advertising
   • Supplies
   • Insurance
   • Professional Services
   • Maintenance
   • Other
7. Enter an optional Description or notes
8. Select the Account from the chart of accounts
9. Select the Tax Code if the expense includes tax
10. Optionally upload a Receipt image file
11. Click Save Expense

Result: An expense bill record is created and posted to accounting. You can record payments against it later.

How to Record Payment on an Expense Bill (Mark as Paid, Record Payment)

Record when you pay an expense bill to track payment status and update cash accounts.

1. Go to Expenses in the left sidebar
2. Find the expense bill in the list and click on it
3. Click the Record Payment button
4. Enter the Payment Amount (defaults to the full bill amount)
5. Select the Payment Method (Cash, Bank Transfer, Check, etc.)
6. Enter the Payment Date (defaults to today)
7. Select the Bank Account from which the payment was made
8. Enter an optional Reference Number (check number, transaction ID, etc.)
9. Add optional Notes
10. Click Record Payment

Result: The payment is recorded. The expense bill status changes to "Paid" and accounting entries are updated to reflect the cash outflow.

How to View Expense Bills (List Expenses, Expense History)

View all expense bills with filtering and search options.

1. Go to Expenses in the left sidebar
2. Use the Search bar to find by supplier name, description, or amount
3. Use the Status filter dropdown to filter by:
   • All - All expenses
   • Unpaid - Bills not yet paid
   • Paid - Bills that have been paid
4. Use the Category filter to filter by expense type
5. Click on any expense to view full details, payment history, and receipt image

Result: You see a filtered list of all expense bills with key information like supplier, amount, date, category, and payment status.

How to Edit an Expense Bill (Update Expense, Modify Bill)

Correct errors or update information on an existing expense bill.

1. Go to Expenses in the left sidebar
2. Find and click on the expense bill you want to edit
3. Click the Edit button (pencil icon)
4. Modify any fields as needed (amount, supplier, date, category, description, account, tax code)
5. Click Save Changes

Result: The expense bill is updated. If the expense has already been posted to accounting, accounting entries are automatically adjusted.

Note: You cannot edit expense bills that have payments recorded if it would change the amount. Record a refund or adjustment separately.

How to Delete an Expense Bill (Remove Expense, Delete Bill)

Remove an expense bill that was created in error or is no longer needed.

1. Go to Expenses in the left sidebar
2. Find and click on the expense bill you want to delete
3. Click the Delete button (trash icon)
4. Confirm deletion in the dialog

Result: The expense bill is deleted. If it was posted to accounting, the accounting entries are reversed automatically.

Important: You cannot delete expense bills that have payments recorded. Delete the payment first, then delete the expense bill.

How to View Receipt Images (View Receipt, Download Receipt)

View or download the receipt image attached to an expense bill.

1. Go to Expenses in the left sidebar
2. Find and click on the expense bill
3. If a receipt is attached, you'll see a receipt thumbnail or icon
4. Click on the receipt to view it in full size
5. Use the download button to save the receipt image to your computer

Result: The receipt image opens in a viewer where you can zoom, scroll, and download it.

Key Concepts

Expense Categories

Expenses are categorized to help with reporting and tax preparation. Common categories include:

• Rent - Office or property rental payments
• Utilities - Electricity, water, internet, phone bills
• Advertising - Marketing and promotional expenses
• Supplies - Office supplies, consumables
• Insurance - Business insurance premiums
• Professional Services - Legal, accounting, consulting fees
• Maintenance - Repairs and maintenance costs
• Other - Miscellaneous expenses

AI Expense Processing

The AI expense processing feature uses optical character recognition (OCR) and machine learning to extract information from bill and receipt images. It can recognize:

• Total amounts and currency
• Vendor or supplier names
• Dates (bill date, due date)
• Item descriptions and line items
• Tax amounts and rates
• Expense category suggestions based on vendor and description

Always review AI-extracted information before saving, as accuracy can vary with image quality and document format.

Expense Status

Expense bills have two main statuses:

• Unpaid - Bill has been recorded but payment has not been recorded yet
• Paid - Payment has been recorded against the bill

Expense bills are automatically posted to accounting when created, regardless of payment status. Recording payment updates the cash account and marks the bill as paid.

Accounting Integration

When you create an expense bill, journal entries are automatically created in your accounting system:

• Debit to the expense account you selected
• Debit to input tax account (if tax is applicable)
• Credit to accounts payable (if unpaid) or cash/bank account (if paid immediately)

When you record payment, additional journal entries update the accounts payable and cash accounts.

Troubleshooting

AI Processing Failed or Returns No Data

Cause: The image quality is poor, the document format is not supported, or the image is corrupted.

Fix:

1. Ensure the image is clear and all text is readable
2. Use supported file formats: PDF, PNG, or JPG
3. Try scanning or re-photographing the receipt with better lighting
4. If AI processing continues to fail, use the Create Manually option instead

AI Extracted Wrong Information

Cause: AI processing is not 100% accurate and may misinterpret text, especially with unusual fonts or layouts.

Fix:

1. Review all extracted fields before saving
2. Correct any errors manually in the form
3. The AI suggestions are starting points - always verify amounts and dates are correct
4. After saving, you can edit the expense bill if you notice errors later

Cannot Record Payment on Expense Bill

Cause: The expense bill status is already "Paid" or the bill was deleted.

Fix:

1. Check the expense bill status on the details page
2. If status is "Paid", payment has already been recorded
3. If you need to record a second payment (partial payment scenario), contact your administrator as this may require special handling

Expense Not Appearing in Accounting Reports

Cause: The expense may not have been saved properly, or you're looking at the wrong date range or account.

Fix:

1. Go to Expenses and verify the expense bill exists and was saved
2. Check which account was selected for the expense
3. Go to Accounting → Reports and verify you're looking at the correct date range
4. Check the specific account in Accounting → Chart of Accounts to see if the expense appears there
5. If the expense is missing from accounting, contact your administrator

Cannot Delete Expense Bill

Cause: The expense bill has payment records or has been locked for accounting period closing.

Fix:

1. Check if payment has been recorded on the expense bill
2. If payment exists, delete the payment record first, then delete the expense bill
3. If you still cannot delete, the accounting period may be closed - contact your accountant