Expense Entry or Voucher: Which One Should You Use?
Expense Entry or Voucher: Which One Should You Use?
Both options record money-related activity, but they are used for different situations. Choosing the right one keeps your reports clear and prevents the same payment from being recorded twice.
Use an Expense Entry when
- Your business receives a bill or has a business expense.
- The expense will be paid later or in parts.
- You want to track the total expense, the amount paid and the amount still due.
Example: You receive an electricity bill today and will pay it next week. Record the bill as an Expense Entry today. Record its payment when the money is actually paid.
Use a Voucher when
- You need to record a direct cash or bank payment.
- You need to record money received.
- The transaction does not need the separate expense-and-payment workflow.
Example: Your business receives cash that needs to be entered directly as a receipt. Use a Receipt Voucher. For a direct payment, use a Payment Voucher.
Important: Do not record the same payment as both an Expense Payment and a Payment Voucher. This can double the amount in your records.
If you are not sure
Ask your accountant or supervisor before saving. It is easier to choose the correct option now than to correct the accounts later.