SAV Academy · Purchases Cycle
Expense invoice
Purpose
Record a direct expense (utilities, rent, services) with recoverable VAT input where applicable.
Who uses it
Accountants.
Step by step
- 1Open Purchases → Expenses → New.
- 2Select the supplier/payee and expense account.
- 3Enter amount and VAT category.
- 4Post.
Key fields
| Expense account | Where the cost is booked. |
| VAT category | Drives recoverable input VAT. |
Practical example
A 500 AED utility bill + 25 VAT posts expense 500, VAT input 25, payable 525.
Accounting impact
Debit expense, debit VAT input, credit payable/cash.
VAT impact
Input VAT is recoverable only on valid tax invoices.