Expenses are costs not directly tied to product costs, such as electricity bills, water bills, salaries, and more. Rewaa allows you to log all your business expenses, whether taxable or non-taxable. Here's how to add a new expense on the platform:
Steps to Add a New Expense
Navigate to:
Accounting > Expenses.
Click on Expenses at the top of the screen.
Select New Expense.
Fill in the following details:
Expense Name: Enter a name for the expense.
Expense Category: Choose a category.
ℹ️ To add a new category, click the + icon.
Date: You can log expenses with past, current, or future dates.
⚠️ Past dates cannot be entered if the financial period has been closed.
Payment Method: Choose the method of payment.
Amount: Enter the Expense amount.
Tax Status:
⚠️ Not all expense categories are subject to VAT. For more information, refer to the regulations and guidelines published by the Zakat, Tax, and Customs Authority (ZATCA).
Tick This amount is taxable if applicable.
Select the tax type and status:
Tax Inclusive: The entered amount includes tax.
Tax Exclusive: The system will calculate and add tax automatically.
Branch: Select the branch.
Reference Number (Optional).
Notes (Optional).
Cost Centers (Optional):
Enables you to organize costs by department or branch for better tracking. For details, click here.
ℹ️ Cost Centers appear after installing the Accounting app.
Attachments (Optional).
Click Complete. The expense will be added immediately.
FAQ
1. Does adding a new expense category reflect in the accounting tree?
Yes, new expense categories automatically appear under Operating Expenses in the accounting tree.
2. Do expenses reflect in daily journal entries?
Yes, after installing the Accounting app, expenses are automatically mirrored in journal entries.
3. Where do cash expenses reflect in the accounting tree?
Cash expenses reflect in Cash in Default Safe (Treasury).
4. Can I create a payment method dedicated to expenses?
Yes, you can add a new payment method via:
Settings > Payment Methods. Then select it when adding an expense. For details, click here.
5. Do expenses automatically reflect in the VAT return?
Yes, expenses are automatically included in the VAT return.
6. How are expenses reflected in the VAT return?
The expense value (excluding tax) is added to Total Purchases Subject to Standard Rate.
Tax is added to the Purchases Tax Amount.
Non-taxable expenses are added to Total Domestic Purchases Subject to Zero Rate.
7. Can I record an expense with multiple payment methods?
Yes, tick the box for Use multiple payment methods, and allocate the amount to each payment method accordingly.