The Expenses tab provides a list of services purchased by your company from the supplier or additional expenses incurred on purchasing the goods. If the purchased services will be provided to the entity during multiple sequential months, you can create deferred expenses for such services.
If the Enable Deferred Expenses option is selected on the Administration > Settings > General Settings form, you will be able to defer expenses for recognition over multiple financial periods.
If the Enable Payroll Deductions option is selected on the Administration > Settings > HR and Payroll form, this tab can be used to distribute the listed expenses for deduction from the salaries (earnings) of specific employees.
Note. The item list on this tab cannot include both Payroll Deductions and Deferred Expenses.
The "Invoice Received (create)" form. The Expenses tab
To allocate the expenses (incurred on purchasing the goods) to costs of the items listed on the Inventory tab, select the Include Expenses in Cost Price check box. This makes the Distribute Expenses button on the toolbar of the Inventory tab available.
Note. Deferred expenses and payroll deductions cannot be included in the cost of items.
To add an expense or service item, click the Add or Pick button (refer to Using the pick operation). To open the list of services, click Add, then the Show All hyperlink. To create a new service, click Create; for more details, refer to the Items topic. You can import a list of expense or service items with prices and other details from an Excel document (an .xlsx file). For this, click the 
button on the table toolbar and follow the step-by-step instructions in the appeared window. The list can be edited in the Administration module.
In the Quantity column, the quantity of the service is specified. The UOM column is automatically populated with the default unit of measurement of the selected service item.
The Characteristic column is available if the Enable Item Characteristics option is selected on the Administration > Settings > Purchasing and Warehouses form. In this column, you can specify additional properties of each purchased item if the Use Characteristics option is selected for the item in its master record (see Items).
The Price column is filled in automatically if the supplier price for the service is available in the system; otherwise, you can enter the price manually.
In the GL Accounts column, you can view the default accounts to be updated by this transaction. If needed, you can replace them with other accounts.
You can use the Discount,% and Discount columns to enter the supplier discount for the purchased service or expense if the Enable Discounts and Markups in Purchasing Documents option is selected.
The amounts in the Amount column are automatically calculated for each item according to the specified price, quantity of the service item, and supplier discounts; otherwise you can enter the amount manually.
The VAT amount is calculated in the currency of the document according to the amount and VAT-related settings (which are specified on the Main tab) as follows:
- If the Prices Include VAT option is selected: The VAT amount is extracted from the item amount (A), that is,
VAT_Amount = A*VAT_Rate/(100+VAT_Rate).
- If the Prices do not Include VAT option is selected: The VAT amount is calculated based on the item amount, that is,
VAT_Amount = A*VAT_Rate/100.
The Total amount is automatically calculated according to the VAT-related settings as follows:
- If the Prices Include VAT option is selected: Total = Amount.
- If the Prices do not Include VAT option is selected: Total = Amount + VAT_Amount.
You can use the Customer Order column to refer to the customer order which is the basis for this purchase. If all line items refer to the same order, you can move the Customer Order column to the Main tab as a field by using the Settings button on the form toolbar.
The Project Task column is available if the Enable Project Tasks option is selected on the Administration > Settings > Project Costing form. You can use the Project Task column to link this purchased item to the project task. If all line items refer to the same project task, you can move the Project Task column to the Main tab as a field by using the Settings button on the form toolbar.
In the Comment field, you can specify some additional information about this service.
In the Transaction Content column, the default description of the GL transactions generated for this purchase is shown. If needed, you can edit the description.
The Department, Expense Item, and Business Activity columns are available if the Include Expenses in Cost Price check box is cleared. Specify the analytics for further analysis of this purchasing transaction.
The tab toolbar buttons
You can use the Up and Down ( 
) arrows to rearrange the items in the list.
The Create / Cancel Deferral button is available on the toolbar if the Enable Deferred Expenses option is selected on the Administration > Settings > General Settings form. Click Create / Cancel Deferral on the toolbar if you need to create a deferral for any selected expense in the list – this invokes the Deferred Expenses dialog box (for more information, refer to the section below). The 
icon in the first column of the list indicates that for this item a deferral was already created. To cancel the deferral, click Create / Cancel Deferral on the toolbar and then Cancel Deferral in the dialog box.
The Payroll Deductions button is available if the Enable Payroll Deductions option is selected on the Administration > Settings > HR and Payroll form. Click the Payroll Deductions button if you need to deduct the expense amounts from the earnings of specific employees – this invokes the corresponding dialog box. The 
icon in the first column indicates that for this item payroll deductions were defined. For information on specifying payroll deductions, see the The Payroll Deductions dialog box section below in this topic.
For descriptions of other buttons, refer to Document toolbar.
The Deferred Expenses dialog box
You can use this dialog box to specify the deferral parameters.
The Deferred Expenses dialog box
A description for deferred expense is auto-generated, however, you can edit or replace it.
By default, the Deferred From field shows the date of the document. If needed, you can specify another date. In the To field, select the date of the deferral end.
In the Calculation Method field, you can select one of the following methods:
- Evenly by Month: To split the amount evenly by the number of deferral months.
- By Calendar Day: To split the amount by the number of days in each month of deferral.
- Manually: To manually specify the amounts for each month of deferral.
In the GL Account field, you can select an account to which the deferred expenses will be posted.
In the Expense GL Account field, select an expense account to be used to post the expense amount recognized each month.
You can use the Department, Expense Item, and Business Activity fields to specify the respective parameters for further analysis of deferred expenses.
You can use the Project field to link the deferred expense with a specific project.
To save the deferred expense, click Save in the dialog box. To discard the changes, click Cancel.
The Payroll Deductions dialog box
You can use this dialog box to create payroll deductions based on the incurred expense.
The Payroll Deductions dialog box
Click Add to add a new line to the list of employee deductions. Create a list of employees to distribute the deduction amount.
In the Employee column, select the employee for deduction.
In the Deduction Type column, select or create a type of deduction.
In the Deduction Amount column specify the particular amount.
Use the GL Accounts column to select the account for recording deductions.
In the Transaction Content column, type a description of the GL entry.
Make sure that the sum in the Deduction Amount column is equal to the expense amount shown on the top of the dialog box.
Click OK to save the list of deductions. Click Cancel to close the dialog box without saving the data.