Basic Functions in Expenses

Expenses in Zoho Books can be created and tracked in different accounts.

In this page…

Create Expense

If you incur expenses in your organization, you can add them in Zoho Books.

To create a new expense:

New Expense

Select the date on which the expense is created.

Expense Account
Select an account to track the expense you’re going to record.

Add multiple expense accounts under which you wish to track different expenses by clicking Itemize. These accounts will be debited once the expense is recorded. After saving the bill, click Display Journal at the bottom of the page to view the corresponding journal.


Enter the expense amount.

Paid Through
Choose the account which tracks the payment for the expense. This account will be credited when the expense is recorded.

Select a vendor to whom you wish to associate the expense.

Tax Treatment
Select the tax treatment of the vendor.

Place of Supply
Select the place of supply for the expense.

This transaction is applicable for domestic reverse charge
You will see this option if the vendor you’ve selected has their tax treatment as ‘VAT Registered’ or ‘Non VAT Registered’.

Mark this option if you’re purchasing supplies such as hydrocarbons, crude oil, and natural gas to re-sell or distribute in other forms from a domestic supplier.

Applying domestic reverse charge on a purchase transaction will affect the values in Box #3 under VAT on Sales and all other Outputs and Box #10 under VAT on Expenses and all other Inputs in the VAT return.

Enter the tax applicable on the expense (if any).

Customer Name
Associate the expense to a customer. You can mark the expense billable to the customer and convert this expense into an invoice to collect payment from the customer.

To make the expense billable:

Unbilled Expenses

Also, you’re creating an invoice for the associated customer, this expense will be shown as an unbilled item in the invoice to be included as a billable line item.

Unbilled Expenses

You can select the expenses to be billed to the customer.

Add Unbilled Expenses

Attach Receipt
Attach the receipt of your expense from your Desktop, Cloud or from your Documents in Zoho Books. You can also delete the receipt by clicking the Trash icon.

Attach Receipt

Choose project(s) you wish to associate with the expense. If you associate a project for the customer, then you can bill it while creating an expense for the customer.

Reporting Tags
Associate reporting tags for the expense. Learn more about Reporting Tags.

New Expense

View Journal

After you have created an expense, you can view its corresponding journal entry in Zoho Books. Here’s how:

View Journal

The corresponding journal will be displayed.

Journal Entry

Pro Tip: To view the journal in the expense details page itself, you can select the expense, scroll down and click Display Journal to view the journal entry.

Import Expenses

You can import a list of expenses you have in the CSV, TSV or XLS format. Here’s how:

Import Recurring Invoices

Insight: The file size cannot be more 1 MB.

Insight: Character Encoding is used to pair numbers with characters. By default, the Unicode Transformation Format (UTF-8) encoding is used which supports a wide range of characters that go beyond 8 bits.

Insight: The Field Delimiter is used to separate two values in a row. While importing recurring invoices, the default file delimiter is comma (,).

Select File Map Fields Map Fields Import Expenses

Next >
Manage Expenses


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