No way to accrue Expenses on ERPNext

Hello all,

My company sometimes incur expenses that are not linked to items and then pay the vendor later.

For example if a graphics designer does some design work for us, we pay 60% upfront and 40% 60 days later.

I have checked everywhere on ERPNext and I cannot find a way to do this.

Ideally I would like to raise an invoice against the vendor’s name and debit my adverts and promotions expense account for the full amount.

The system will then recognize the balance unpaid as an accounts payable.

How can I do this on ERPNext?? Am I missing something?

You can also make Service (non stock) Items in ERPNext

Thanks @ rmheta

But that is not the right approach to it.

These are not “items” or “services” that I sell. I use them. Some I will never use again, some will be used again but in a different way. You definitely do not want to clutter your item list with all of them

The appropriate way that ALL other ERPs that I know of handle this situation is to allow the user create a purchase order/invoice against an expense account. So you have the option to create a PO/Invoice for

  • an Item
  • or expense account
  • or even both in one invoice.

This is a basic need and if it is not in ERPnext yet, the team needs to quickly include it.

Sorry if I sound critical, am just surprised that’s all.


You check the following link for handling advance payments. Maybe it would be useful to you.

You can create just one generic service item in Item master and change the description accordingly while generating the PO

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But with journal you can make necessary accrual in erpnext.Create a group called Provision and Accrual as a direct child of Current Liability.Create the account and use journal to carry out the necessary posting

thanks @Fred1

But I think using Journal you will not be able to update the vendors account. The transaction may show as an acrual in your balance sheet, but you will not be able to track which vendor you are owing.

Or am I wrong??

@Pawan then all your expenses will go to one expense account, that is not ideal


@olamide_shodunke you can update the vendor in the journal.It allows you to select the vendor.If the vendor is a trade creditor you need not create another group you just create the vendor as a party in account payable but if you want to further differentiate your account payable into Trade Creditor and ;Provision and Accrual you will need to create another group but in all the supply account can be selected in the journal

That would be great @Fred1

But I do not see any where in the Accounts/Journal Entry form to update vendor…

Or are you referring to another document??

This will be a nice work around …kindly show me where…


What is the Party stand for.When you select the Vendor as group,there is an option for party

The above is a screen grab.

At the party field, you cannot bring up vendor/supplier…it does not bring up anything.

Is there something I need to do to make it active??

Thank you Fred for your time


I see my mistake now

The party field will come up when the accounts payable is picked

Sorry for the bother. Will test this out now

Thank you Fred



Its a valid work around. It works


@olamide_shodunke, looks like your issue is resolved but for your information you can enter or override the account at the purchase invoice Item line details.


Great!! Two solutions for the price of one…this works too, lol

I have been 'battling ’ with ERPNext for the last 3 weeks. I plan to cut over my company by February 1 this year.

The more I learn, the more I like.

Thanks Pawan