Expense transactions include any expense arising from a vendor. For other expenses without a vendor name, you can use the Journal Entry option. For a better understanding, let's take a real-life example – “Office equipment is purchased.” What would be the journal entries for this transaction?
Office Equipment account→ Debtor.
Cash account → Creditor.
See the difference? There is no vendor name. In such cases, use the Journal Entry option to key the transaction into the system.
In this section, you will learn all the nitty-gritty of expenses referring to a vendor name. Here are the things that you are going to learn:
- How to use Vendor Credit form to purchase on credit from a vendor.
- How to use Payment Voucher to pay or purchase in cash from a vendor.
- How to reverse or neutralize a credited vendor.
- How to approve or void a vendor expense.
- How to make payments in installments to a certain vendor.