If I need to record an accrued expense where there is no invoice: payment of the bus/metro, coffee during travels, bank expenses, etc…, it usually happens to have only bank registration (card payment) eventually without paper receipt. What should I use?
Payment entry of Journal Entry?
I found suggestions about the better use of Payment Entry but I don’t know how to do that. In fact Payment Entry requires a Party and this is doable (I create Metro company, Bank, etc…) but in Accounts under Account Paid To I cannot select directly the account like Travel Expenses, Bank Expenses, etc… I can select only payable accounts and it means I have later register an invoice for it. That means it needs another operation to register the specific invoice for it (Purchase invoice) even if it does not always exist.
What’s the best practices? What do you do usually?
What about just using Journal Entry? That’s simpler in these situations but I need to understand if there are problems later, for instance in bank reconciliation or others
You can make doctype related to expenses and that doctype contain information about expenses you need to record and expenses account and paid amount and account paid from
And make script to create journal entry with this accounts when doctype is submitted
I would recommend using a Journal Entry. It wouldn’t affect bank reconciliation. If one of the accounts on the Journal Entry is a bank account, it will still show up on the bank reconciliation tool.
What’s the advantage on the Journal Entry process?
I mean this: what you’ve indicated seems I need a developer to set this, and not to use tools already existing on ERPnext. Is it right? Or I misunderstood you?
Hi All
The expense recording depends upon the nature of the expense along side accounting and compliance requirement fulfillment geographically.
ERPNext offers expenses recording through invoices where taxed expenses can be recorded to serve Reporting Purposes either internal or external.
On the other hand, non itemized expenses which are not taxed can be easily booked by Journal Entry knowing the fact, Journal Entry is internal document and should NOT be recording taxed expenses where supplier (outside entity) is involved.
Moreover, Journal Entry does not server the purpose of Three Way Matching of Expense recording as well.
Hi,
Another way doing using what is available in ERPNext is to book the Purchase Invoice with “is Paid” tick. This will create expense as well as payment entry in single shot.
Once you select “is Paid”. You can select the Bank/Cash Account on Payment Tab:
Hope this will help.
Regards,
Divyesh M.
Thank you so much for your explanation but actually I’ve not understood so much your logics even I’ve understood the procedures.
Let’s do an example.
On some transactions to pay a supplier the bank charges you some fees about forex expenses (currency changes +other fees). I don’t know how you consider the bank but I don’t have an invoice from the bank about each of these applied expenses. So I’ve created in the Chart of Accounts, under the Expenses the account Bank Expenses. Every expenses related to this, I create a Journal Entry that put money on that Bank Expenses. Is it correct this procedure?
Or as explained @mangroliya , I have to create a fake Purchase Invoice from the bank and select ‘As Paid’?
The bank is the same where the transactions are operated