in ERPNext, the total expense for a transaction is recorded as 7400. the direct expense is recorded as 7500 ,while the indirect expense under freight and forwarding charges for shipping is 100. is this correct calculation in erpnext is there any mistake in it .
is in ERPNext, expense = direct expense - indirect expense ?
can any one help me
Hi @ameen1981
The Expense GL Accounts under COA are distributed into two main group.
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COGS Expenses = Direct Expenses = Main Business Expenses like Manufacturing cost, Overheads etc.
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Non COGS Expenses = Indirect Expense = Regular Expenses like Marketing Expenses, Entertainment Expense and so on.
Total Expenses = CoGS + Non CoGS
Hope helped you with clear understanding.