Utilities

Utilities records electricity, water, generator fuel and similar services the office consumes. The NEA bill is paid monthly, usually through a bank or connectIPS, and the cost is posted here with the cost center that used it. Electricity carries 13 percent VAT, which a VAT-registered business can claim back through VAT Receivable if it holds a VAT bill in the company's name; a bill in the landlord's name is not claimable. When the Ashadh bill arrives in Shrawan, accrue it with a Journal Entry against Accrued Expenses so the old year carries the cost. Posting utilities to Office Rent because the landlord collects them hides the true rent for TDS purposes.

Utilities for the period = Electricity + Water + Fuel bills for the months consumed, net of claimable VAT

1. 01Collect the NEA or water bill and note the Nepali month it covers.
2. 02Go to Invoicing > Journal Entry > New, or Buying > Purchase Invoice if the bill is in the company's name.
3. 03Debit Utilities with cost center Main - YFF and credit the bank account paid from.
4. 04If the bill shows VAT in the company's name, debit VAT Receivable for the 13 percent.
5. 05Submit. The entry below posts.
6. 06Match the bank row in Banking > Bank Reconciliation Tool.

Post by Purchase Invoice or Payment Entry when the NEA or water bill is paid. Pick the cost center that used the premises.

Dr Utilities Rs 4,000, Cr Bank Account Rs 4,000 for the Shrawan NEA electricity bill, cost center Main - YFF.