Expenses

Use Expenses to record a cost you have already paid, with no supplier bill to wait for. Saving it takes the money out of the cash or bank account you paid from, adds the cost to your expense categories, and books any VAT you can claim back.

Where

Banking & cash › Daily › Expenses

Number

EXP-000001, given when you save

Posts to

Your expense categories, Input Tax Recoverable, and the cash or bank account you paid from

Who

Managers and admins

What it’s for

• A cost that is already paid: rent, fuel, repairs, a courier. It was paid in cash, from a bank account, or by cheque.
• Paid by bank card or bank transfer? Choose the bank account the money came out of.
• It does not receive stock, and it does not create a bill to pay later.
• To pay later, use Expense bills instead. This screen has a link for it: Pay later? Record an expense bill.
• To move money between your own accounts, use Transfers, not Expenses.
• A cheque that is dated later than the expense is allowed. It has its own rules, below.

Fields

An expense has a header (who was paid and when), one or more lines (what was bought), and a Payment and Totals panel. Fields marked with a star (*) on the screen are required. Every line also needs a description, a category, an amount and a VAT rate.

Field	What it means	What it changes
Who was paid	Saved supplier or One-off payee	Decides which payee fields you fill in
Supplier or Payee name	A saved supplier (search, or add one) or the name of a one-off business or person. One of the two is required	Shown on the expense. A saved supplier also gives the TRN
Payee TRN	The payee’s tax registration number (TRN). One-off payees only. Optional. Type it only when it is on the receipt	Kept on the expense. Needed if you claim VAT back (see below)
Expense date	The day you paid. Defaults to today. It cannot be in the future	The date of the journal entry and of the VAT
Supplier document no.	The receipt or supplier invoice number. Optional, up to 100 characters	Used to spot a number already used for the same saved supplier
Payment reference	Optional, up to 120 characters: a cheque, bank, card or voucher reference	Kept with the expense and searchable. No accounting effect
Internal notes	Optional, up to 2,000 characters	Kept with the expense. No accounting effect
Paid by	Cash or bank, or Cheque	A cheque asks for a number and a date, and only offers bank accounts
Paid from	The active cash or bank account the money came from. The screen shows its balance on the expense date	That account goes down by the total paid
Cheque number and Cheque date	Only for Cheque. The cheque date defaults to the expense date	A cheque dated after the expense date is post-dated (see below)
Description	What was paid for, up to 500 characters	Printed and searchable
Category	The expense category of this line. Type a name and choose Create to add one (admins)	Which expense account takes the cost
Amount	The money for this line, in AED	The line total
VAT rate	The VAT rate of this line	The VAT worked out on the line
Incl. VAT	Yes when the amount already includes VAT. No when VAT is added to it. New lines start with your company’s setting for whether prices include VAT	How the VAT is worked out
Claim VAT	Yes claims the VAT back from the tax authority. No keeps the VAT as part of the cost. Starts as No	Whether the VAT goes to Input Tax Recoverable or into the expense

An expense has between 1 and 50 lines. The Totals panel shows Net before VAT, VAT, Expense amount, VAT claimed back and Paid now. These are worked out by the app, not added up from what you typed.

There is nowhere to attach a receipt photo. The Internal notes hint says to keep the receipt with your records.

Claiming VAT back

Claim VAT is closed in these cases, and the screen says why:

• A zero-rated line has nothing to claim: A zero-rated line has no VAT to claim.
• Your company was not VAT registered on the expense date: You can’t claim VAT back: the company is not VAT registered on this date.

To claim VAT back, the company needs its 15-digit UAE TRN, and the saved supplier or one-off payee needs a 15-digit TRN too. See What the app blocks.

Which accounts you can pay from

• Banks: every active bank account.
• Cash drawers: only a drawer assigned to you. A drawer that an open register is using is refused.
• Cash on Hand and Petty Cash: only if an administrator has turned on Pay expenses and transfers from Cash on Hand and Petty Cash in Settings › Accounting rules. It is off to begin with.
  • When it is on, administrators and managers can choose these two accounts. Cashiers cannot.
  • If the rule is turned off later, an expense already paid from them can still be deleted or cancelled, but not edited.

Buttons

Nothing touches your accounts until Save expense. These are the buttons on the list, the form and an open expense.

Button	When you see it	What happens	Accounts
Record an expense	The Expenses list	Opens the entry form	No change
Save expense	New expense	Saves it, gives it a number and posts it. Pressing it twice does not post twice	Posts
Save & new	New expense	Saves it, then opens a blank form	Posts
Cancel	New expense or edit	Leaves without saving	No change
Print…, Download CSV	The list, when it has rows	Prints or downloads the rows that match your filters	No change
Print… (or Print in the row menu)	A saved expense	Opens the expense voucher. It is also available for a cancelled expense	No change
Edit expense	A saved expense, when a change is allowed	Opens the form. Save changes shows every change old to new and asks for a reason; Save changes again confirms	Restated on its own date
Delete expense	A saved expense, admins only, when a change is allowed	Asks for a reason, then removes the expense. The number stays reserved	All effects removed
Correct today	Open expense, when Edit and Delete are not allowed (admins)	Cancels it and saves the right one, both dated today. Review correction, then Cancel it and save the correction	Posts
Cancel with a correcting entry	Open expense, when Edit and Delete are not allowed (admins)	Asks for a date and a reason, then gives the money back with a new entry dated that day	Posts
Accounting details (a tab)	A saved expense	Shows the account it was paid from, the expense accounts debited and the journal number, with a button to open the journal	No change

Statuses you will see: Saved, Cancelled, and for a deleted expense Deleted (it no longer appears in the list, but its number stays). You can filter the list by search text, Paid from, Category, Status, From and To.

What gets posted

Posting writes one journal entry, dated on the expense date. Lines with a zero amount are left out.

Example 1Paid from Cash on Hand: one line claims VAT, one does notTwo lines · VAT 5% · total paid AED 157.50

• Line 1: 100.00 before VAT, VAT added, Claim VAT = Yes105.00
• Line 2: 52.50 including VAT, Claim VAT = No52.50
• VAT claimed back (line 1)5.00
• VAT kept in the cost (line 2: 52.50 × 5 ÷ 105)2.50
• Paid now157.50

Account	Debit (AED)	Credit (AED)	Why
6700Office and Administration Expense	100.00		Line 1 cost, without its VAT
The expense category chosen on line 2	52.50		Line 2 in full: its VAT is part of the cost
1400Input Tax Recoverable	5.00		VAT you can claim back
1000Cash on Hand		157.50	The whole amount paid leaves the account
Total	157.50	157.50	Balanced

The credit goes to whichever account you chose in Paid from. A bank account posts the same way, with the bank account in place of Cash on Hand. Cash on Hand goes down by 157.50.

Example 2Paid by a cheque dated on or before the expense date100.00 before VAT · VAT 5% claimed · bank account

Account	Debit (AED)	Credit (AED)
6700Office and Administration Expense	100.00
1400Input Tax Recoverable	5.00
1020Bank Accounts (the bank account the cheque is drawn on)		105.00
Total	105.00	105.00

The bank moves on the expense date. The cheque number and date are kept as evidence on the expense. After saving, the message says: Paid by cheque ‹cheque number› from ‹bank account›. Bank balance reduced today.

Paid by a post-dated cheque

If the Cheque date is later than the Expense date, the cheque is post-dated. The screen says: Post-dated: the bank moves when the cheque clears.

Saving writes two things in one step. If either fails, neither is saved.

• An expense bill on the expense date. It owes the supplier, so the bank is not touched yet.
• An issued cheque for the full total, drawn on the bank account you chose.

Example 3Saving a post-dated cheque expenseCheque dated 30 days later · 100.00 before VAT · VAT 5% claimed

Account	Debit (AED)	Credit (AED)	Why
6700Office and Administration Expense	100.00		The cost is recorded on the expense date
1400Input Tax Recoverable	5.00		The VAT is counted on the expense date, not the cheque date
2000Accounts Payable		105.00	You owe the supplier until the cheque clears
Total	105.00	105.00	Balanced

After saving, the message says: Expense recorded on credit (‹bill number›) and cheque ‹cheque number› issued for ‹date›. The bank is not reduced until you clear the cheque in PDC cheques. The list shows the badge Cheque expense, waiting to clear.

What happens next is on the Cheques screen:

• The cheque clears. The supplier debt of 105.00 is paid: Accounts Payable goes down by 105.00 and the bank account goes down by 105.00, on the clearing date. The bank does not move before that.
• The cheque bounces or is cancelled. The expense stays recorded and the 105.00 stays owed. The badge says Cheque returned by the bank. The bill is unpaid. or Cheque cancelled. The bill is unpaid.

A post-dated cheque must be made out to a saved supplier, and drawn on a bank account, never cash.

Where it shows up

Place	What changes
The account you paid from	Its balance goes down by the total paid, on the expense date. See Cash and bank accounts
Cashbook	A “Paid expense” line for that account. A cancelled expense adds a “Paid expense reversal” line
Day book	One entry for the expense, and one for each cancellation
VAT return (Detailed Reports › Tax)	VAT you claim back counts as input VAT in the period of the expense date
Profit and loss	The expense categories you used
Balance sheet	The cash or bank account, and Input Tax Recoverable
Bank reconciliation and cash counts	The expense is protected once its date is reconciled or counted (see the next section)

What the app blocks

The checks run before anything is saved. A refused expense leaves no half-written records, and the form keeps what you typed.

Situation	What you see
No supplier chosen, or no one-off payee name	Select a valid supplier. or Select a supplier or enter a one-off payee.
A one-off payee name of 1 character	Use at least 2 characters for a one-off payee.
No lines	Add at least one expense line.
More than 50 lines	Use 50 expense lines or fewer.
A line with no description	Enter a line description.
An amount of 0	Enter an amount greater than zero.
No category or no VAT rate on a line	Select a valid expense category. or Select a valid tax profile.
Claim VAT = Yes on a zero-rated line	Zero-rated VAT can’t be claimed back. Choose No under Claim VAT back.
No Paid from account	Select a valid Cash or Bank Financial Account.
An unassigned cash drawer	Choose a physical cash drawer assigned to you, or use an active bank account.
A drawer an open register is using	This Cash Financial Account is assigned to an open POS drawer. Close the drawer or choose another Cash or Bank Financial Account.
Cheque with no number, or no date	Enter the cheque number. or Enter the cheque date.
Cheque paid from cash	A cheque is paid from a bank account. Choose a bank account.
Post-dated cheque to a one-off payee	A post-dated cheque is made out to a saved supplier. Choose a saved supplier or add a new one.
Cheque number already used on that bank account	This cheque number is already used on this bank account (‹document›). Use the next cheque in the book.
Supplier document number already used for that supplier	This supplier document number has already been used for the selected supplier.
Claiming VAT with no company TRN	Enter the company 15-digit UAE TRN before posting recoverable VAT.
Claiming VAT with no valid payee TRN	Enter the supplier or payee 15-digit UAE TRN before posting recoverable VAT.
Claiming VAT on a date when the company was not VAT registered	Input VAT can only be recovered when the company is VAT registered on the supplier invoice date. Choose Non-recoverable VAT. or, when the registration date is known, Input VAT can only be recovered on or after the date the company was VAT registered (‹date›). Choose Non-recoverable VAT, or use a date on or after ‹date›.
Date in the future	Choose today or an earlier date.
Date inside a locked period	The accounting period is locked through ‹date›. Choose a later date, or ask an administrator to reopen the period.
The cash account was already counted to that date	This Cash account was already counted through the selected date. Undo its latest cash count or choose a later transaction date.
The bank account was reconciled to that date	A bank account in this journal is reconciled through ‹date›. Undo that reconciliation first.
Cash on Hand, Petty Cash or a drawer would go below zero (only when your company turned on Don’t let cash go below zero)	This would take ‹account› below zero on ‹date› (balance then AED −‹amount›). Record at least AED ‹amount› of cash coming in on or before ‹day› first, then save again. It appears beside Paid from
A bank account would go below zero	This would take ‹account› below zero on ‹date› (balance then AED −‹amount›). Record at least AED ‹amount› coming in on or before ‹day› first, then save again.
The screen cannot tell if the save worked	The notice We couldn’t confirm the last expense you saved appears and the form is locked. See Fixing a mistake
Anything else goes wrong while posting	The expense could not be posted safely. No expense or accounting records were created.

Going below zero

A bank account is protected from going below zero. Cash on Hand, Petty Cash and cash drawers are protected only when an administrator turns on Don’t let cash go below zero in Settings › Accounting rules. The same page has the choice If a payment would take a bank account or cash below zero. It decides what happens to a payment that would go below zero. The three choices are Block, Allow a manager with a reason and Warn only. They work the same on every screen. See Cash and bank accounts.

• Block refuses the expense with the messages above. This is the default choice.
• Allow a manager with a reason: the message ends with Or ask a manager to approve it with a reason. An administrator, or a manager whose role allows it, sees the Approve with a reason box and can approve and save.
• Warn only saves the expense and tells you the account is below zero: ‹account› is below zero from ‹date› (AED −‹amount›).

Who can do it

Action	Admin	Manager	Cashier
Open Banking & cash and see the Expenses list	Yes	Yes	No
Record an expense	Yes	Yes	No
Pay from Cash on Hand or Petty Cash	Yes, when the company rule is on	Yes, when the company rule is on	No
Pay from a cash drawer	Only a drawer assigned to them	Only a drawer assigned to them	No
Record a post-dated cheque expense	Yes	Yes	No
Edit expense, print the voucher	Yes	Yes	No
Delete expense	Yes	No	No
Correct today, Cancel with a correcting entry	Yes	No	No
Approve a payment that takes an account below zero	Yes	Yes, when the company allows it	No
Turn on the Cash on Hand and Petty Cash rule	Yes	No	No

These are the standard roles. Your administrator can give a custom role each action separately in Settings › Users & access. Editing never lets anyone do more than they could when the expense was first entered.

Fixing a mistake

1. You have not saved yet. Change the form, or press Cancel. Your accounts are not touched.

2. The screen says “We couldn’t confirm the last expense you saved”. The form locks so the expense is not entered twice. Press Check status. If you are not sure it was saved, look for it in the Expenses list first. If the server proves nothing was saved, you are offered a Discard button to start again.

3. A wrong amount, category, VAT choice, payee, date or account. Open the expense and use Edit expense.

   • The expense is restated on its own date, with the same number. Its journal entry is updated, not added to.
   • A reason is required. The history keeps the before and after.
   • The same checks apply as when you first saved it. For example, the new total cannot take a protected account below zero.

4. The expense should not exist (a duplicate, or entered by mistake). An administrator uses Delete expense. Every account, VAT and cash effect is removed, and the number stays. A post-dated cheque expense is deleted together with its cheque.

5. Edit and Delete are not offered. The reason is shown in a notice on the expense, for example Locked period — locked through ‹date›. or a VAT return with locked figures. An administrator can then:

   • use Correct today to cancel the wrong expense and enter the right one, both dated today; or
   • use Cancel with a correcting entry to give the money back with a new entry. Nothing is deleted. The original stays in history.

   A locked month and a VAT return with locked figures are never changed. The correction goes into today’s date and your next VAT return.

When Edit expense only changes part of it

Some changes stay open, but the payment itself is fixed:

• The date is already reconciled with the bank, or counted. You can still change the category, VAT code, supplier and note. The date, the account and the total stay as saved. You can move an amount between lines, as long as the total stays the same.
• The cash is in a register that is open. The same applies until the register is closed.

Delete is not offered in these cases.

Cheque expenses

A post-dated cheque expense can be edited or deleted only while its cheque is still issued. Once the cheque is presented, cleared, returned or cancelled, you see Cheque ‹cheque number› has already been presented, cleared, returned or cancelled, so this expense can no longer be changed here. Use PDC cheques. Correct it on the Cheques screen.

You cannot change the cheque date to the other side of the expense date. A same-day cheque cannot be dated after the expense, and a post-dated cheque cannot be dated before it. Delete the expense and enter it again.

When a rule has been switched off

If the Cash on Hand and Petty Cash rule is turned off later, an expense paid from those accounts cannot be edited, even to change only the note. You see Choose a physical cash drawer assigned to you, or use an active bank account. To change it, move it to a bank account, or ask an administrator to delete or cancel it.