Section Five

Section Five
Expenses

General Description
The Expenses Menu
Entering a New Expense Record
Entering an Adjustment
Show an Expense Record
Searching for an Expense Record
Changing an Expense Records Details
List Expenses
Summary of Expenses
Totals of Expenses
Unpaid Expenses
Data stored in an Expense Record
Expense Categories
General Description
Expense Categories Menu
Profit and Loss Expenses
Balance Sheet Item Expenses
Entering a new Expense Category
Deleting an Expense Category
Update Expense Category
Listing Expense Categories
Data stored in an Expense Category Record

General Description
The Expenses module is used to manage and record expenses incurred by your business.
You can create a new expense transaction, view any transaction made, or modify certain details about it.
Finding a record is easy, just type in the expense number in the data entry box and the transaction record will appear on the screen.
If you don't know the expense number then you can tell the computer to search for it by it's characteristics such as category, month,
invoice number or expense description.
You can find out how much you owe by using the option to list unpaid expenses, or you can view a summary of your
expenses in either a monthly or yearly format and then print it.
You can also view the total of your expenses in a variety of formats.
From this module you can start the Expense Categories sub module.

The Expenses Menu

Screen Presentation of the Expenses Menu

Entering a New Expense
This option is used for entering new expense transactions into the computers database.
There are five steps to creating a new expense record.
1. Expense Type is selected from list
2. Expense Category Name is selected from list or a new category is added
3. Date is entered or accepted
4. Other expense details are entered
5. Record is saved

Screen Display of Entering a New Expense

The Expense Type is either a Profit and Loss (Non Capital )or a Balance Sheet Item (Capital) expense.
You then select the Category Name from the list of those for that expense type.

The date of the expense is set to the current date or you can change the date if you wish.
You can then enter information with regard to the transaction such as Invoice Number, Description of Expense, Amount,
or Payment Due Date and the Status of the Expense.
When all the details are entered the complete record is saved by clicking the Save button.
If the expense has been paid, then the total monies spent in that expense category is updated automatically.
You can show this detail by looking up the expense category and displaying the category details.
See section on Expense Categories to see how this is done.

Entering an Adjustment
This option is used for entering new adjustment transactions into the computers database.
There are five steps to adding an adjustment record.
1. Expense Type is selected from list
2. Expense Category Name is selected from list
3. Date is entered or accepted
4. Other adjustment details are entered
5. Record is saved

Screen Display of Entering an Adjustment

You can select either a Profit and Loss or a Balance Sheet Item type.
You are then prompted for the Category Name from the list of those in that expense type.

The date of the adjustment is set to the current date or you can change the date if you wish.
You can then enter information with regard to the adjustment such as Reference, Description, Credit Amount and the Status.
When all the details are entered the complete record is saved by clicking the Save button.
If the adjustment has been paid, then the total monies spent on that expense category is updated automatically by subtracting the credit amount.
You can show this detail by looking up the expense category and displaying the category details.
See section on Expense Categories to see how this is done.

Show Expense Record

Screen Display of Show Expense

This option enables the user to locate and modify a transaction recordin the database.
You will be prompted for an expense number which is entered at the data entry box.
Click OK and the record will appear on the screen, if it exists.
If not, then a message will appear to alert you that it doesn't.
If you do not know the expense number click search to display a search menu.

Screen Presentation of an Expense Record

Searching for an Expense Record
If you do not know the Expense Number then click Search to search by Category, Month, Invoice Number or Expense Description.
The search will produce a list all records found.
Double click an entry in the list to bring up that record in detail.

Screen Presentation of the Search for an Expense menu

Searching by Month
If you select Month then you can select a month from the drop down list.
The computer will then look at all expenses in that month and present them to you as a list.
If the search doesn’t find anything then the message "Sorry, No Records Found" will appear.

Searching by Goods Description
This option permits you to the search by a description of the expense.
You are asked to enter a search string in the data entry box.

Searching by Invoice Number
This option lets you search by the number of the invoice for the expense.
You can type a search pattern if you don't know the full number.
Select Pattern Match to intensify the search.
If the invoice number was 675899 and you entered 58 then a pattern match would find this record.

Searching by Category
If you select Category you will be prompted for an expense type and category name.
Click search and a list of all expenses posted to this category will be produced.

Screen Presentation of an Expense Search listing

Changing an Expense Record's Details
When changing a records details for the first time and you enter the status as paid, then the field Date Paid is set automatically by
the computer to the actual date.
You can edit this date if required.
When an expense record status is marked as paid the total Year to Date amount for the expense category is automatically
incremented by the amount of the expense.
When an Adjustment is paid the total Year to Date amount for the category is automatically decremented.
If any modifications are made to an Expense or Adjustment record, the OK button becomes a Save button.
For the modifications to be made permanent, the Save button must be clicked.

List Expenses
This option gives you the ability to list your expense transactions by summary, totals and unpaid.

Screen Presentation of the List Expenses Menu

Summary of Expenses
This option gives the user a summary of expenses in a variety of formats.
You can select from Monthly, Year to Date and Expense Category in either Profit and Loss or Balance Sheet Items or both expense types.

Screen Presentation of Expense Summary

To use this function select Summary at the List menu.
You can then select the type of summary required.
Click OK to produce the list.
You will be asked for an Authority Code if you are not logged in, and after correctly entering it the summary will then be produced.
This function is also available in the Accounts module.

Totals of Expenses
This option will list all the monies paid by you towards your expenses as well as all adjustments received.
The information presented is in the form of a list with the Expense Number, Date, Category Name, Invoice Number, Amount,
Description of Expense, Date Paid and Reference, GST Report No and Status.
The list can be weekly, monthly, year to date, specified period or category total.
The total of all the expenses is listed with an option to print the list as well.
This option requires the management code to operate.
The totals shown at the end of the list are Total of all Expenses minus Total Adjustments plus the sum of
GST Free Expenses and Adjustments to give Total cost of Expenses.
This is added to Total GST paid to Give Total Cost.
From this is subtracted the Private Use amounts to give the Proportion Allowed.
See Section in Expense Categories for a description of Proportion Allowed.
The Totals of Expenses option is also available in the Accounts Module.

Screen Presentation of Totals of Expenses

Unpaid Expenses
This option will list all the outstanding debts owed by you on your expenses as well as adjustments not received.
The list can be weekly, monthly, year to date, specified period and category total.
Overdue payments are flaged to show that some action should be taken.
The amounts shown at the end of the list are Total of all Unpaid Expenses minus Total Outstanding Adjustments plus
Unpaid GST Free Expenses and Adjustments to give the Total Owing for Expenses.
This is added to Total GST Owing to give Total Expenses and GST Owing.
From this we subtract the Private Use amounts to give the Proportion Allowed.
The Unpaid Expenses option is also available in the Accounts module.

Screen Presentation of Unpaid Expenses

Data stored in an Expense Record

Expense Type				The Expense type of Profit and Loss or Balance Sheet Item

Expense Category Number and Name	The category number and name from the category database

Date					Date of Invoice or Payment Request

Invoice Number				The invoice, payment request or account number

Payment Due Date			Date the payment must be paid by

Invoice Amount				The amount to be paid

GST Amount				The GST amount to be paid if applicable

Description of Expense			The description of the expense

Status					Current expense status

Payment Date				Date the expense was paid

Payment Method 				How you paid the expense

Cheque/Receipt/Ref Number		Cheque, receipt or reference number

BAS Report Number			The Number of the Business Activity Statement in which this transaction appears

Expense Categories

General Description
The Expense Categories Menu
Profit and Loss (Non Capital) Expenses
Balance Sheet item (Capital) Expenses
Entering a New Expense Category
Deleting an Expense Category
Update Expense Category"
Listing Expense Categories
Data Stored in an Expense Category Record

General Description
The Expense Categories module is used to keep and maintain records of your expense categories.
Finding a category record is easy, just type in the category number at the data entry box and the record will appear on the screen.
You can enter new categories into either the Profit and Loss (Non Capital), or the Balance Sheet Item (Capital) expense types.
You can display and print an expense category listing which contains all the details of your categories including year to date totals.
When the program is supplied to you, the profit and loss expense categories has only one entry, which is
"Written off as a Bad Debt" set as category one.
The balance sheet item expense categories have no preset entries.
Each category can have it's own GST Tax Input Credit as well as a proportion allowed assigned to it.
The proportion allowed value is used to determine the private use amounts for expenses incurred to the business.

The Expense Categories Menu

Screen Display of the Expense Categories Menu

Profit and Loss (Non Capital) Expenses
Profit and Loss Expenses or Non Capital Expenses are generally classified as expenses incurred to your business which would
normally appear in a business profit and loss statement.
The usual entries included would be Written Off as a Bad Debt, (which comes preset as category one), Electricity and Power,
Council Rates, Water Rates, Telephone and Communications, Lease of Shop, Advertising, Software, Wages, Repairs and Maintenance
of Motor Vehicle and Hire of Tools and Equipment amongst others.
Your accountant can advise on what categories you need to set up for your business.
Each category is given a sequential number as it is entered by you into the system.

Balance Sheet Item (Capital) Expenses
Balance Sheet Item Expenses or Capital Expenses are generally classified as expenses incurred to your business on items which
will have value and a useful life.
An example of these would be Tools of Trade, Computer and Office Equipment, Furniture and Fittings and Test Equipment which
are usually depreciated by your accountant.
Your accountant can advise on what categories you need to set up for your business.
Each category is given a sequential number as it is entered by you into the system.

Screen Presentation of Expense Category Details

Entering a New Expense Category
Clicking New Category at the Expense Categories menu will let you add a new category record into the database of the selected expense type.
You are prompted to enter the category name, Input Tax Credit and Proportion Allowable.
The Input Tax Credit is set to 0% (no credits) and should be set appropriately.
This allows you to have separate expense categories set up for tax free items, input taxed items as well as creditable aquisitions.
The Proportion Allowable set to 100% (all use by business).
If this business uses the same phone as your home, then the Proportion Allowable should be set to an appropriate value.
Youe accountant will tell you what values to set.
On completion of the data entry click the Save button to save the record.
The Year to Date amount and Last Expense Number are automatically cleared.

Deleting an Expense Category
Clicking "Delete" at the Expense Category Details screen will immediately prompt you with the message "Delete This Expense Category".
Clicking "Yes" will then delete the category record.
The next expense category added to the database whose expense type is the same as the deleted category, will be automatically
issued with that category number.
Note. An expense category can only be deleted if there are no expenses in that category on record in the current financial year.
The Delete button will only be available under these circumstances.

Update Expense Category
When a category records details are being displayed, clicking the Update button will update the year to date totals and the
last expense number for that category.
This is done by checking all expenses and totalling all records posted to this category.
Any expense record that has not been paid will not be added to the year to date total amount but the last expense number will be updated.
Note. An expense category can only be updated if there are expenses in that category on record in the current financial year.
The Update button will only be available under these circumstances.

Listing Expense Categories
Clicking "List" at the Expense Categories menu will produce a listing of categories for the selected expense type.
The line contains the Category Number, Category Name, Input Tax Credit, Proportion Allowable, Last Expense Number and the
total Year to Date expenses.
In the case of Profit and Loss expenses, category one, the Last Job Number is shown.
Since the Profit and Loss category number one is "Written off as a Bad Debt", there can be no Last Expense number linked to this category.
When a job or sale is written off as a bad debt the amount is automatically added to a running total in this category and hence the
Last Job Number is recorded instead of the last expense number.

Screen Presentation of Category Listing (Profit and Loss)

Data stored in an Expense Category Record


Category Number and Name		The Category Number and Name from the Expense Category Record.

Input Tax Credit 			The percentage applied to calculate the input tax credit.

Proportion Allowable			The percentage applied to calculate the business and private use amounts.

Year to Date Expenses			Total amount of expenses in this category this year

Last Expense Number			The number of the last expense in this category

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