Expense is the term used for all the ordinary and necessary costs a business incurs in order for it to operate. Common expenses include payments to suppliers, employee reimbursements,rent payments for offices or some equipment, team celebrations, travel expenses etc.
Since businesses are also allowed to write off tax-deductible expenses on their income tax returns it becomes all the more important to manage expenses. Expense management includes all the aspects : recording, paying, automating and integrating expenses with existing ERP and HRMS systems.
Usually expenses are categorized as recurring expenses and one time expenses.
Usually, the administrative and operating expenses required for a business’s day to day operations are termed as recurring expenses. These expenses typically appear on a company’s income statement. Employee salaries & wages, rent payments, utilities, insurance, legal fees etc are recurring expenses.
One time Expenses
The expenses which a business does not expect to continue over a period of time,at least not on a regular basis are put under one time expenses. Expenses made for repairs, purchase of real estate, purchase of machines or operating equipments, expenses during a natural calamity etc are one time of expenses
Paytm Payouts Expenses module allows the merchant to add , record and track all the expenses and their payments at one place. Also, the payment disbursals for each expense can be managed with a custom approval workflow. Paytm payouts offers features like timely reminders, auto payments, and integration with ERP and HRMS systems for expense management.
The first step for managing an expense is to add an expense to the Paytm Payouts dashboard. Follow the simple steps below to start adding expenses
- From the left main menu, select 'Expenses'
- Click on 'Add new expense'
- Start filling the details for the expense that is to be added
- Select the payee for the expense to be added. The drop down option shows the list of all the contacts added in the contacts section. The new payee can also be added directly by clicking the 'Add new payee name' option, in case, the payee is not added previously in the contacts directory
- Fill the rest of the details for amount, date, expense type, purpose etc
- For recurring payments, the frequency of the expense payment can be selected as daily, weekly or monthly
- It is mandatory to associate a store to the expense. This will keep the record of expenses for each store
The user can choose from the list of only those stores which are associated with the user profile.
The overall store list can be only viewed by the admin user, or any user who is associated to all the stores
- The physical copy of the expense such as bill, challan, receipt etc can also be uploaded
- Payments can be automatically scheduled for a set due date and time with 'Enable Auto Pay' option
- Select the disbursal account which will be used to pay this expense at the scheduled date and time
- Click on 'Save' to add the expense details
Note: Enable Auto pay option can be selected only if the payee bank account details are filled while adding the payee as a contact in the system.
Follow the steps below to add a new payee instantly , while adding the expense
- In the add expense section, click on select customer. Click on the 'Add New Payee' option
- Fill in the details of the payee in the Add New Payee form
- Click on ‘ Add contact’ to save the details and add the payee as a contact in the system
It is preferable to add the bank account details in case the expenses registered for this new contact are recurring in nature. This will allow users to select the ‘ Enable auto pay option’ and schedule the future payments.
All the expenses added in the system can be viewed under the 'All Expenses' header. The details of the recurring expenses along with the schedule for the subsequent payments can be viewed under the 'Recurring expense' tab. The payment status for expenses can be viewed under the 'Expenses Payment History' tab.
- Each expense added in the dashboard is visible in this list view
- The summary widget shows the amount overdue for total expenses added in the system and the pending expense amount
- The expenses in the list view can be filtered using the filter values for payee name, purpose, payment status, due date and payment type. The store type filter at the top allows the user to view the expenses of each store separately to which the user is associated
- Select the expense and click on 'Proceed to Pay' to make payments for the expense
- Click on 'Download Expenses' button to download the excel sheet for filtered results of expenses
- The list view shows all the recurring expenses added by the user. Click on any expense to know the details of all the associated past payments made for that recurring expense as well as the auto created standing instruction for its next payment cycle
- The summary widget mentions the total recurring expense amount and the total expense amount created along with the number of expenses
- For finding an expense, use the filters for payee name,purpose, duration or payment type. Use ‘download expenses’ button to get the details for the required expenses
- Use the options under the Action header against each recurring expense to view/edit/ delete it
- The detailed view of a recurring expense shows its purpose, start & end dates. The summary widget mentions the total expense cycles already created and their amount. It also shows the total upcoming amount and the upcoming cycles
- The list view shows all the recurrent expenses. Click on any expense to view its associated expenses created till date along with the standing instruction for the next expense
- Click on any associated expense to know its details for purpose,payee details and payment details
Once an expense is created in the dashboard only selected fields can be edited. The expense type can never be changed / edited, i.e. one time expense can never be changed to a recurring expense and vice versa.
Note: An expense cannot be edited if it is already paid, partially paid or marked as paid.
Edit a Recurring Expense
- From the recurring expenses tab, select the expense to be edited. Under the 'Actions' header, select the option to edit
- Make changes in the amount, expense date, frequency, date and time for scheduling the payments
- Auto pay status can also be edited for an expense.
- Click on ‘ Save’ to confirm the changes
Note : All the changes made while editing a recurring expense will be reflected only in the future expenses associated with this recurring expense. If the Auto pay option is enabled, only the main expense can be edited and not the associated expenses, since they are auto generated by the system.
If the expense schedule has already started then no changes can be made for customer name and purpose in the recurring expenses.
Edit a One- time Expense
- From the 'All Expenses' section, select the one time expense that is to be added
- One time expense cannot be changed to a recurring expense, but all other changes can be made
- Click on 'Save' to confirm the changes
Note : One time expense cannot be edited past the due date.
The expenses added to the Paytm Payouts dashboard, can be paid using payouts account or disbursal account. The payments for expenses made in offline modes such as cash or any other mode of online payment can also be recorded here.
- Under the 'All Expenses' tab, select expense (s) to be paid
- Click on 'Proceed to Pay' to initiate the payment process
- Re-check the payment details. Select the payout account or disbursal account to make the payment
- Click on 'Pay' to make the payment
The payment for the expense can also be scheduled using the ‘ Auto Pay’ option. Check the ‘Auto Pay’ option and select the future date to make the payment for the selected expense. Clicking on the ‘ Save’ button will save the payment schedule and the expense will be automatically paid through the chosen disbursal account.
- Check the 'Expenses payment History' tab to know the status of each expense
NOTE: If an Approval workflow is set for the disbursal account which is selected for the expense payment, the approval request for processing the expenel will go to the approver. The concerned approver can accept or reject the bill from the 'Approvals' section in the left main menu. Once the expense payment request is approved by all the approvers set in the workflow, the payment will be released from the disbursal account for expense payment.
Mark an Expense as Paid
The expense payments made in cash or any other mode of online payment can also be recorded.
- Select the unpaid expense, for which an offline payment has been done, click on the options under the 'Actions' header in the list view of 'All expenses'
- Click on 'Mark as Paid'
- Choose the mode of payment for this mode of payment, such as cash, paytm, cheque, card or bank transfer
- Set the date on which payment was done. Mention the amount settled for this expense.
Note : If the amount is partially settled, the expense will be marked as 'Partially Paid'
- Click on ‘ Proceed’ to save the changes for the expense
Deletion of expenses can be done in a few simple steps
- Click on the unpaid expense that is to be deleted
- From the options under the 'Action' header , choose delete option
- Click on 'Confirm delete'
Note : Only unpaid expenses can be deleted. The expenses for which the payments are paid or are partially paid cannot be deleted.
Also, the expenses for which auto pay option is enabled cannot be deleted.