Expenses

Expenses is the root group of the lower half of the Profit and Loss statement, every cost the company incurs to earn its income. It takes no postings; a Purchase Invoice, Journal Entry or stock document debits a specific ledger beneath it, and the group totals Cost of Sales, Employee Benefits Expense, Depreciation and Amortisation, Impairment Losses, Other Operating Expenses, Finance Costs, Income Tax Expense and Loss from Discontinued Operations. For the IRD only costs with a proper bill, and with TDS deducted where required, count against taxable profit, so each expense ledger should be backed by a supplier invoice in the Purchase Book or a signed voucher. Income less this group is the net profit closed to Retained Earnings.

Expenses = Cost of Sales + Employee Benefits + Depreciation and Amortisation + Impairment + Other Operating + Finance Costs + Income Tax + Discontinued losses

1. 01Go to Accounts Setup > Chart of Accounts and expand Expenses to see the sub-groups and ledgers.
2. 02Post supplier bills with Buying > Purchase Invoice and accruals or payroll with Invoicing > Journal Entry to a ledger beneath.
3. 03Open Financial Reports > Profit and Loss Statement, set the period, and read the Expenses total.
4. 04Use Financial Reports > General Ledger with the Account filter to drill into any line.
5. 05Compare monthly totals with Financial Reports > Budget Variance Report if budgets are set.

Never post here. Purchase Invoices, Journal Entries and Payment Entries use a specific child such as Office Rent.

Yatra For Fun's Expenses for the first month include depreciation of Rs 1,235.54 from Journal Entry ACC-JV-2026-00091.