Expense

Expenses are costs incurred by a company either directly or indirectly in the process of generating revenue. These expenses may be recorded on a cash basis or accrual basis depending on when the payment is made or the liability is recognized.

In Tigg, although the transaction is named Expenses, it is essentially a supplier bill recording feature used in cases where inventory tracking is not required. It can be used to record supplier bills related to operational expenses such as internet, utilities, office expenses, and professional services, as well as purchases of a capital nature such as fixed assets.

Unlike a Purchase Bill, Expenses do not require item-wise entry and can be recorded directly by selecting the appropriate GL account. If inventory or trading goods need to be tracked item-wise, the Purchase Bill feature should be used instead.

Essential Requirement

Before creating an expense entry, it is recommended to have the following records created in the system:

1.Supplier – The vendor from whom the expense is incurred.

2.Credit Term – Defines the payment terms and determines the due date.

3.Accounts – Relevant expense or asset GL accounts available in the Chart of Accounts.

1. In the Purchase module, select Expenses.
2. Click “+ Add New” to create a new expense entry.
3. A unique Expense Number will be generated automatically if auto-numbering is enabled in configuration. Otherwise, it can be entered manually.
4. In the Supplier Name field, select an existing supplier from the drop-down list.
   If the supplier is not available, click “Add New” and create the supplier by entering the required details.
5. Select the Date using the calendar icon.
   . This represents the transaction date or the date the expense was incurred.
6. Select the due date either by choosing it from the calendar or by manually entering the date. 
7. Enter the Supplier Invoice Reference, which refers to the invoice number provided by the supplier.
8. Select the appropriate account where the transaction should be recorded. If the required account is not available, click “Add New”, enter the account name, and assign it under the appropriate parent group or category. Once the account is created, the Chart of Accounts will be updated automatically.

Example: A laptop purchased for office use should be classified under Non-Current Assets.

1. Enter the Amount and select the applicable Tax if required.
   Users may also add a description for each account line or delete the line if necessary.
2. If applicable, select TDS (Tax Deducted at Source) and specify:

• TDS Account
• TDS Type
• TDS Amount

1. Additional information such as Notes, Reporting Tags, Custom Fields, or Attachments can be added for better documentation and reporting.
2. Click Save to record the transaction.
3. The Expense can be saved as:

• Draft  : Can be reviewed or modified later
• Approved : Indicates that the expense  are finalized and ready to be shared with the Supplier.

 If the approved Expense  is selected then the quick action button” Record Payment” will be shown if clicked, then you will be directed to the supplier payment 

 

When an expense entry is opened, several options are available to manage the transaction.

Quick Action Button

For a draft expense, a quick action “Approve” button will be available which allows the user to approve the expense.

Once the expense is approved, the quick action changes to “Record Payment”, which directs the user to record the supplier payment related to that expense.

Edit Expenses

This option allows users to modify details of an already created expense entry before or after approval, depending on user permissions.

Make Duplicate
Selecting this option creates a duplicate copy of the currently opened expense entry.
Users can edit the copied information and save it as a new expense transaction.

Void Expenses Entry

This option invalidates the selected expense transaction.

Once an expense is voided, the transaction cannot be reverted.

Print / PDF

Any expense entry (draft or approved) can be previewed, printed, or exported as a PDF.

Tigg provides default printing templates which can be customized from:
Configuration → Printing Templates

 

What's Next?

Learn how to record purchase returns and adjustments with debit notes.

➡️ Learn more: Debit Notes