A Recurring Expense will create expenses based on intervals as specified. For example a recurring expense can be created to create expenses with some details every week on Tuesday, or every 1st of the month. All of the created expenses will have the same values, except for the dates and IDs.
To create a recurring Expense, go to the Finance tab > Expenses > Recurring Expenses. Fill out the fields as mentioned below.
- Name: The name for each recurring expense must be unique.
- Vendor: Select the correct vendor
- Description: Brief description. The text entered here will also show on the Description field of the expenses
- Effective Date: The date when you want the first expense to be generated
- Expiration Date: System will stop generating expenses as of this date. No expenses will be generated after this date. The last expense will be generated on or prior this date, if the generation date falls on another date.
- Frequency: Select the desired interval of how often the related expenses should be generated
- Invoice Number Prefix: The prefix of the expense IDs. Must be a unique value
- Auto Submit: Select this box if the related expenses should be generated in Submitted status. If this box is left blank, the expenses will be generated in Draft status, and will need to be submitted manually.
- Line Items: The line items can be filled out as on regular expenses. There is no need to show a tax line item, as taxes will be calculated when the expenses are created and will show only there
Click Save once all fields have been filled out. Click Activate from the Actions button on the top right corner, to activate the Recurring Expense, which will create one or many related expenses based on the selected frequency. The generated expenses will function just like a regular expense.
The Run History tab will show all related expenses which are generated. This list will continue to increase, up until the last expense as per the Expiration Date. In the example below we can view all of the related Expenses which were created based on the Recurring Expense above.
Here are the expenses shown on the Expenses lister.
The created expenses will have the Tax line items added post generation. The tax is added after generation because the tax policy is date dependent, which means another tax rate can be in effect as of particular date, which might be different from the tax rate when the Recurring Expense is created.