Versions Compared

Key

  • This line was added.
  • This line was removed.
  • Formatting was changed.

...

1. At the Time of Expense Incurrence (before payment is made):

Create Other expense documents from the Accounting module.

In the main tab, add Accural type as the transaction type 

...

  • Debit: Expense Account (e.g., Rent, Utilities, Services)

You can create a separate GL account, such as "Rent Expense," instead of grouping it with other expenses for better classification.

  • Credit: Accrued Expenses / Accounts Payable (Liability)

You can use a "Current Liability" GL, such as "Accounts Payable," or classify it under "Other Current Liabilities" as needed.

 

2. When the Payment is Made (at a later date)

...