Communication Expenses
Also called: Telephone and Internet
Mobile, landline, internet and courier charges, on the Profit and Loss statement.
In detail
Communication Expenses holds the cost of staying in touch: internet subscriptions, landline and mobile bills, SMS gateway and cloud phone services. The WorldLink or Ncell bill is posted here, by Journal Entry when paid online or by Purchase Invoice when the provider sends a VAT bill in the company's name, in which case the 13 percent is claimable through VAT Receivable. The chart also has a shorter ledger called Communication left by the template; the two are duplicates, so choose one for all postings and leave the other empty, otherwise the Profit and Loss splits one cost across two lines. Personal phone top-ups for staff are better shown as part of salary or Staff Welfare.
Formula
Communication Expenses for the period = Internet + Phone + Messaging bills for the months used, net of claimable VAT
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Communication Expenses | Rs 3,000 | |
| Bank Account | Rs 3,000 |
How to record it in BRAccount
- 01Collect the provider's bill and check whether it carries the company's PAN and VAT.
- 02Go to Buying > Purchase Invoice > New for a VAT bill, or Invoicing > Journal Entry > New otherwise.
- 03Debit Communication Expenses, debit VAT Receivable if claimable, and credit the bank or Creditors.
- 04Submit. The entry below posts.
- 05Match the bank row in Banking > Bank Reconciliation Tool.
When to use it
Post by Purchase Invoice or Payment Entry for NTC, Ncell or WorldLink bills. The chart also has a plain Communication account; pick one and stick to it.
Example from the demo books
Dr Communication Expenses Rs 3,000, Cr Bank Account Rs 3,000 for the Shrawan WorldLink internet bill.