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Purchase Invoice for Business Expenses

Are you proposing using an existing doctype for this child table? If so, that’s a nice idea. Which one did you have in mind? If I’m misunderstanding you, yes, it’s just reordering the doctype/ list view settings.

This is the solution you prefer? Just trying to make sense of this thread. My counter argument to this would be that the Purchase Invoice is already one of the most complicated and information-dense UIs in ERPNext. Making more than one workflow for the same document I think of as evidence of a poor UI. I do agree that @vivek’s design makes the best of what’s there.

I replicated what Vivek suggested here. Used some details from your screen. I have reordered ‘in list view’ for filed inside the ‘Purchase Invoice Item’ table.

Thanks Liyakat. There’s a bit of a mismatch here between accounts and Items, which I didn’t explain very well.
The child table in the Indirect Expense design is for splitting accounts. The child table in your design/ Vivek’s design is for Items. Items should be associated with an account by default but they don’t represent an account.

Using the electricity example from above, you may want to allocate some portion of the electric bill to a manufacturing expense and some portion to a general overhead type of expense. I find this to be a common use case for this interface. It is the default interface to pay bills in QuickBooks (which has no real concept of Items so it’s maybe not the best example).

One of the features that is “missing” from Purchase Invoice is the ability to book an Expense to more than one account head. (This can be done retroactively with Landed Cost Voucher, but it’s not designed for non-stock items and it just a gets to be a mess). Adding this feature would get you into an attribution problem (Items to Accounts) as soon as you have more than one item on the Purchase Invoice. In an SQL backed system there isn’t a great solution for a many-to-many relationship and it’s a very difficult thing to represent in a UI anyway. I think it’s better being sidestepped as often as possible, which has been the Frappe team’s solution.

I guess my larger point is that I see an Indirect Expense or Business Expense as more Journal-Entry-like than Purchase-Invoice-like and that that is a stronger start point to add this feature. Sorry for all the tangents; to me anyway, this is a deep, non-trivial problem.

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this is interesting. Precisely in costing terminology this is called ABC (activity based costing). If you working on something like this with separate doc_type, then its a great feature to add.

I like that ABC term, I would have otherwise just called it “cost accounting”. The scope of the Indirect Expense feature does not relate to Items, only non-stock expenses. I haven’t tried pulling the electricity-example-expense into a Landed Cost Voucher, but that’s worth looking into and makes this design all that much more useful. Thanks for the suggestion.

What is the correct way to handle expenses(rent, utilities) on ERPNext? Is it journal entry or purchase invoice

How? Can you explain? I havent found a way to mark item as a Service, just as purchase or sales item.

Thanks!

Set Item Type/Group as service and check off Maintain stock. The latter is more important

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