Expenses and input VAT

Purchases & expenses

When to use an expense vs a purchase invoice, and how VAT is counted.

Operating expenses

Use expenses for operating costs (rent, utilities, supplies…) with a category and ledger account.

Purchase invoices fit stocked goods and recurring suppliers. Expenses fit direct operating costs without stock items.

Enter amount, VAT, category, and date. After posting it hits expense reports and the VAT summary.

Eligible input VAT reduces net VAT (output − input) in the journal’s period.

Purchases & expenses

Purchase invoices

Record supplier purchases and their stock/VAT impact.

Reports & VAT

VAT summary: periods and reading

How to pick dates and why the report can look empty when movements exist.

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