When to use Payable Modules or Record Expense?

Created by Level 1 Support Team, Modified on Wed, 3 May, 2023 at 10:29 PM by Level 1 Support Team

There are 2 ways to book Expense Payable:

1. If you want to record as a payable now and pay later, then do it via Bills Payable or Purchase Invoice. In this way you can have Vendor SOA or Payment History, Ageing Report , Payable balance.

Difference Between Bills Payable & Purchase Invoice is only 1 thing i.e.,

a. In Bills Payable: You will directly expense the ledger, by selecting it in the table. Therefore it will DR = Ledgers selected in Table & CR = AP.

b. In Purchase Invoice: You will create Item and link ledgers to Item. Therefore it will DR = Expense Ledger linked to Item & CR = AP

In both the scenario, ledger impacts is same. Therefore, preferable in this scenario is Bills Payable.

Later once you want to pay, you can pay using Vendor Bill Payments.

2. If you want to record as expense directly and pay it on spot, without the need to trace payable nor in need of SOA nor in need of Ageing nor in need of tracking Payment history, then do it via Record Expense. It will DR = Expense (Ledger selected in Table) & CR = Pay From (Bank Directly).