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.

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 available the Distribute Expenses button on the toolbar of this tab.

To add an expense or service item, click the Add or Pick button (refer to Working with the pick operation). To open the list of services, click the Show All hyperlink. To create a new service, click Create; for more details, refer to the Items topic. You can download 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.
You can use the Up and Down (  ) arrows to rearrange the items in the list.

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 service 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 Department, Expense Item, and Business Activity columns to specify parameters for further analysis of this purchasing transaction.

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.

In the Comment field, you can specify some additional information about this service.

In the Transaction Content column, the description of the service is shown by default. If needed, you can edit the description.

The Business Activity column is available if the Include Expenses in Cost Price check box is cleared. Select the business activity which is associated with this expense.
If you need to create a deferral for any expense in the list, select the expense and click Create / Cancel Deferral on the toolbar to invoke the Deferred Expenses dialog box. The icon in the first column 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 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.