Expenses & Purchases

Expenses and purchases allow us to record the costs incurred by our business' operations to generate income, as well as the acquisition of assets or inventory items that we can later sell to customers.

1. Record an expense or purchase

To record a new expense or purchase:

1. In the main menu, go to Purchases and then click on Expenses / Purchases.
2. In the list of Expenses and Purchases, click on the (+) button and then select New Document.
3. Choose the supplier, currency, issue date, and due date, as well as the status (Draft or Open) and the employee. If this purchase is associated with an import, you can check the option to Create Landed Cost document.
4. If you choose a foreign currency (EUR$) for an expense / purchase, a new field with the exchange rate will be displayed. You can adjust this rate if necessary.
5. In the content section, you will see two tabs, Items and Accounts. In the Items tab, you can select products or services that you have previously added to the system in the master area. In the Accounts tab, you can choose to affect accounting accounts.
6. In the Items tab, choose a product or service and set the description, tax, quantity, cost, and discount.
7. In the Accounts tab, you can select an ledger account, tax, cost, and discount.
8. Each expense / purchase comes with a default line in both the Items and Accounts tabs. However, if you need to add more lines, simply click the (+) button below the list and repeat the previous step.
9. In the totals area, you can apply discounts as a percentage (%) of the purchase or a fixed amount ($). To apply one or the other, just click on the word DISCOUNT ($) and choose the desired option. Then click on the amount next to it and define the discount amount or percentage.
10. To apply additional charges to an expense / purchase, below the totals, choose an option from the list field and define the amount in the adjacent field. If you need to add more charges, just click the (+) button next to the list field.
11. Finally, you can add Additional Notes.
12. Click Save to save the document.

2. Editing an Expense or Purchase

There may be occasions when it's necessary to modify a purchase. This could be due to an error or oversight. To edit a purchase:

1. In the main menu, go to Purchases, then click on Expenses/Purchases.
2. In the list of Expenses/Purchases, locate the purchase you want to modify.
3. Click on the actions menu (three horizontal dots) and then select Edit.
4. Make the necessary adjustments.
5. Click Save to save the changes.

3. Deleting or Void a Purchase

There may be occasions when it's necessary to delete or cancel a purchase. This could be due to an error or oversight. To delete or cancel a purchase:

1. In the main menu, go to Purchases, then click on Expenses/Purchases.
2. In the list of Expenses/Purchases, locate the purchase you want to delete or cancel.
3. Click on the actions menu (three horizontal dots).
4. If the purchase is in Draft status, you will have the option to Delete.
5. If the purchase is in Open status, it cannot be deleted because it has an accounting record. In this case, you will have the option to Void Document.
6. You will be prompted to confirm the action.

4. Sending a Purchase via Email

To send an expense/purchase via email:

1. In the main menu, go to Purchases, then click on Expenses/Purchases.
2. In the list of Expenses/Purchases, locate the purchase you want to send via email.
3. Click on the actions menu (three horizontal dots), and then click on Send by Email.
4. Fill in the fields for To (Email), Subject, and Message. These details will come by default, but you can make necessary adjustments.
5. If you need to include a BCC or CC, click on the link next to the To field.
6. Click on 'Send' to send the document.

5. List of Expenses / Purchases and Options

The expenses and purchases module provides a list of all expense and purchase transactions made and a set of options in the action menu (three horizontal dots) for each transaction. These options allow you to manage and track each transaction easily. The options in this menu are:

1. Preview
   This option allows you to preview the document as it would appear when printed.
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2. Edit
   If you need to edit an expense or purchase, this option allows you to make changes to a document in Draft status.
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3. Duplicate Document
   If you need to record a document with similar information to an existing one, this option allows you to duplicate it to avoid entering the same data again.
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4. Pay
   If you need to record a payment made for an expense or purchase, you can do so with this option. This option will take you to the checks and payments module to record the transaction.
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5. Apply Advance
   If you have made an advance payment to the supplier, you can use this option to apply it to the corresponding document.
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6. Create Landed Cost document
   If the purchase is being imported or requieres additional shipping costs, you can use this option to create an associated landed cost document.
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7. Create Credit Note
   If you need to adjust the purchase for returns or discounts after the purchase, you can record a credit note from the original purchase.
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8. Attach File
   Allows you to add files related to the purchase, such as supporting documents or attached files.
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9. History
   Allows you to view all transactions associated with this purchase, including advances, payments, applied credit notes, etc.
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10. Audit
    The audit shows the changes made to the document, allowing detailed tracking of modifications.
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11. Send by Email
    This option allows you to directly send the purchase to a third party via email.
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12. Delete
    If you ever need to delete an expense or purchase for any reason, you can do so using this option. Note that you can only delete a document in Draft status.
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13. Cancel Document
    If you need to cancel a recorded expense or purchase, you can use this option. A canceled document cannot be deleted and remains in the system for record and audit purposes.
    

6. Import Expenses and Purchases

If you are migrating from another system, this function allows you to upload a list of expenses and purchases from a spreadsheet file instead of adding each transaction individually.

1. In the main menu, go to Purchases and then click on Expenses / Purchases.
2. In the list, you can click the (+) button and then select Import.
3. Alternatively, you can choose Import from Excel located below the list.
4. Once you are on the import screen. In the Transaction Type field, choose Expenses / Purchases, and select Create in the Action field.
5. Click on the Upload File button, and in the window, click on Browse File to choose your import file from your computer. You can download an import template by clicking on the Import Template option.
6. Once the file has been successfully uploaded, click Continue.
7. Now you will need to match the fields. In the Match Fields window, for each field on the left, choose the corresponding column from your file in the dropdown menu.
8. When you have finished matching the fields, click Continue.
9. Your data will be imported into the spreadsheet window. Here, you can review and make any necessary adjustments.
10. When you have finished reviewing your data, click Save and Upload.
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Remember, it is always important to review the data after a mass import to ensure that everything has been imported correctly.

Tips & Best Practices

1. Organization
   Maintain a detailed record of your expenses and purchases, including the transaction date, supplier, products or services acquired, and the total amount. This information is crucial for tracking and financial planning.
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2. Proper Use of Document States
   Use the 'Draft' state for transactions that are not yet complete or require review. Once you are confident that the information is correct, change the state to 'Open.' Remember that once a document is in the 'Open' state, it can no longer be modified.
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3. Currency and Exchange Rate
   When conducting a transaction in a foreign currency, ensure that you verify and adjust the exchange rate as necessary to reflect the current exchange rate.
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4. Regular Review
   Periodically review your expenses and purchases to detect possible errors or inconsistencies. This will help you maintain accurate and up-to-date financial records.
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5. Use the Duplicate Function
   If you frequently engage in similar transactions, use the duplicate function to save time. This allows you to copy all the details of an existing transaction, which you can then edit as needed.
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6. Apply Advances
   If you made an advance payment to a supplier, remember to apply it to the corresponding invoice to maintain an accurate record of your payments and balances.
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7. Data Import
   If you are migrating from another system, use the import function to upload your transactions in bulk. This can save you time and ensure that your records are complete.
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8. Supporting Documents
   Whenever possible, attach supporting documents to your expenses and purchases. This can include receipts, invoices, contracts, etc. This practice will help you maintain a complete record of each transaction and can be useful in the event of an audit.
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9. Void or Delete Incorrect Transactions
   If you realize that you have recorded an expense or purchase incorrectly, make sure to void or delete it, as appropriate. This will ensure that your financial records are accurate and correctly reflect your business's financial position.
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10. Conduct Audits
    Use the audit function to track changes made to your transactions. This tool can be useful for detecting errors, irregularities, or fraudulent activities.

These best practices can help you manage your expenses and purchases more effectively, improving the accuracy of your financial records and streamlining your business operations.

Common Problems

Here are some common problems and their solutions:

1. Can't Find an Item to Include
   If you can't find a product or service in the Items list, it may not be available for purchase. To activate it, go to Masters > Products and Services, find the product or service, and click Edit. Activate the "Can be Purchased" option and click Save to save the changes. Remember to exit the document and re-enter to see the changes.
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2. Currency Error in the Transaction
   If you encounter discrepancies in values after recording the transaction, it could be due to an error in the exchange rate. Make sure to verify the exchange rate if you are using a foreign currency in the transaction. Review and adjust the exchange rate to ensure it's correct. If necessary, void and re-create the transaction.
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3. Can't See the Landed Cost Option
   If you can't see the "Create Landed Cost" option in both the document and the action menu, make sure you have the Landed Cost module included in your subscription, and that you have the module permissions activated. If the module is not included in your subscription, you can change your plan in the Settings > Subscription and Payments area. If you need to activate the permission, you can go to Settings > Platform > Permission Groups.
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4. Unable to Edit or Delete a Document
   Once an expense/purchase is in the "Open" or "Closed" state, it cannot be modified or deleted as it generates a transaction that affects accounting. To modify a purchase, you'll first need to void the document and then recreate it.
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5. Duplicate Documents
   Duplicate entries may occur if an expense or purchase has been accidentally recorded multiple times. Regularly review and verify all transactions. If you find a duplicate document, you can delete it if it's still in the "Draft" state. If it's already in the "Open" state, you'll need to void it.
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6. Email Issues
   When sending a document via email, you may encounter issues like undelivered or unreceived emails. Ensure that the email address is correctly written. Also, check the email sending history to verify the email's status.
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7. Applying Advances to Expenses/Purchases
   If you've made an advance payment to a supplier, you may encounter problems if it's not applied correctly to the corresponding document. Make sure to use the "Apply Advance" option in the action menu to properly apply any advance payment to the purchase document.
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8. Data Import Errors
   When importing data from a spreadsheet, errors can occur if the data doesn't match the required formats and fields in the system. Ensure you're using the correct format for each field and that all required fields are present in your import file. Use the provided import template to ensure the correct format.
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9. Import Takes Too Long
   The import processing time depends on the file size. If the file is large, it may take several hours to import all the data. Be patient and wait for the import to complete. If it's been several hours and it's not completed, consider contacting customer support.
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10. Missing or Incorrect Data After Bulk Import
    When you upload a file, the system matches the columns in your file to the fields in Cashflow. If the data doesn't appear correctly, review the field mapping to ensure that each field in Cashflow corresponds to the correct column in your file.
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Remember that in case you can't resolve the problem, it's always best to contact technical support for assistance and to avoid potential errors that could affect your accounting records.