How to Record an Expense Payment
Use this feature to record payments made against previously recorded expenses that were not fully paid at the time they were created.
Before you begin: An expense payment can only be recorded for an expense that already exists in the system with an outstanding balance.
Step 1: Open the Expenses List
From the sidebar menu, click Expenses.
Select Expenses List.
The Expenses List page will display all existing expense records.
Step 2: Open the Expense Payment Form
Locate the expense you want to pay.
Under the Action column, click Add Payment.
The Expense Payment popup window will open.
Step 3: Enter Payment Information
Complete the required fields:
| Field | Description |
|---|---|
| Payment Source | Select where the payment is coming from. |
| Paid Amount | Enter the amount being paid toward the expense. |
| Cheque Number | Enter the cheque number if payment is made by cheque. |
| Voucher Number | Enter the voucher reference number if applicable. |
| Date | Select the payment date. |
| Note | Enter any additional information related to the payment. |
Payment Source
Select the source of funds used to pay the expense.
Account
Choose Account if the payment is being made directly from a business account such as:
Cash Account
Bank Account
Mobile Money Account
Any other business account
Then select the specific account used for the payment.
Advance Payment
Choose Advance Payment if the expense is being settled using funds that were previously paid in advance.
Then select the related advance payment transaction.
Step 4: Save the Payment
Review the payment details entered.
Click Save to record the payment.
If you do not wish to continue, click Cancel to close the window without saving.
Once saved, the payment will be applied to the selected expense and the outstanding balance will be updated automatically.
Understanding the Accounting Effect
When Payment Source Is an Account
The system will:
Reduce the balance of the selected account.
Reduce the outstanding balance of the expense.
Update the expense payment history.
If the payment clears the remaining balance, the expense will be considered fully paid.
When Payment Source Is an Advance Payment
The system will:
Reduce the available balance of the selected advance payment.
Reduce the outstanding balance of the expense.
Link the payment to the selected advance transaction for future reference.
Impact on Financial Reports
Profit & Loss Report
Recording an expense payment does not affect the Profit & Loss Report.
This is because the expense was already recognized when the expense record was originally created.
Balance Sheet
Recording an expense payment reduces:
The outstanding expense liability.
The balance of the selected payment source.
As payments are recorded, the amount owed by the business decreases accordingly.
Cash Flow Report
If the payment source is an account, the payment will appear as a cash outflow and reduce the available balance of that account.
If the payment source is an advance payment, the available advance balance will be reduced accordingly.
Important Note
Recording an expense payment means that the expense has already been recorded previously without full payment.
Expense payments are used to settle outstanding expense balances and should not be used to create new expenses.
If an expense was fully paid when it was originally recorded using the Add Payment option on the expense form, no additional expense payment is required unless an outstanding balance still exists.
Best Practice
Record expense payments as soon as they are made to ensure your outstanding liabilities, account balances, and financial reports remain accurate and up to date.