Communication
Also called: Telephone and Internet
Mobile, landline and internet charges, on the Profit and Loss statement. A near duplicate of Communication Expenses.
In detail
Communication is a second ledger for phone and internet costs that sits beside Communication Expenses under Other Operating Expenses; the standard chart template created both. They behave identically, debited by Journal Entry or Purchase Invoice when a phone or internet bill is paid. Having two ledgers for one cost is harmless to the totals but confusing to read, so decide on one: a common choice is Communication for mobile top-ups and prepaid recharges that come without a VAT bill, and Communication Expenses for monthly postpaid and internet subscriptions with VAT. Whatever the rule, write it in the account description so the next bookkeeper follows it. Recharges for staff phones used personally are not a business expense.
Formula
Communication for the period = Mobile recharges and prepaid phone costs posted to the ledger
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Communication | Rs 1,200 | |
| Cash | Rs 1,200 |
How to record it in BRAccount
- 01Decide which communication ledger takes which kind of bill and note it on the account.
- 02Go to Invoicing > Journal Entry > New dated the recharge.
- 03Debit Communication and credit Cash, naming the number recharged in the remark.
- 04Submit. The entry below posts.
- 05Read both communication ledgers together on Financial Reports > General Ledger when reviewing overheads.
When to use it
Post by Purchase Invoice or Payment Entry for phone and internet bills. Because Communication Expenses also exists, use one of the two consistently.
Example from the demo books
Dr Communication Rs 1,200, Cr Cash Rs 1,200 for the office Ncell top-up in Bhadra.