How to book expenses for a Machine Purchase or Maintenance work?
“Book Expenses” or “Expenses booking” is a process of recording the data and entries into ERP system for Machines or maintenance work or travel or other type of expenses. Below details would answer following questions
- Record the Machine components purchase and book expenses against Expense / Capital account heads
- Book expenses and maintenance amount spent for a Machine repair. How to book other related expenses?
- Show these expenses under investment side / at annual expenses side for Accounting purpose.
Machine maintenance and booking expenses can be done with multiple options
- Booking the service costs at the time of Receiving the SERVICES or PAYING the money to vendor.
- Issuing the materials to this specific Account at the time of repair or maintenance work.
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Book the Service costs when you Receive the SERVICES or when you PAY the money
Step-1: Create an Account in “Account Master” to identify the specific expenses. It could be for a machine or for a work.
Please create an account under “Account category” as “Repairs”. These accounting details would show in “Profit and Loss” details for a financial year.
Step-2: When you are booking an Expense to this category, you can follow 2 approaches
Step-2a – By creating a Purchase Order of Services type.
Go to Purchase Menu and select the “Services” section and create a PO. After that Receive the Services. After this, you can do the payment as regular one from the “PAYMENT Menu”.
Step-2b – Booking Expenses directly in “Expenses and Advance” menu. So select this “ACCOUNT” and book expense against it. This menu would process the payment immediately.
How to issue the materials to the maintenance work and how to book expenses?
- Go to “Inventory” menu -> “Issue / Receipt of Items”.
- Select the ACCOUNT as “Repair or Maintenance” account.
- When you issue the items, the cost of the ITEM is booked into this account.
For any doubts or clarifications send an email to sales@actouch.com