The menu previously called Expenses has been renamed Purchases.
Why? Well, generally in accounting software we differentiate between:
a purchase, which relates to a payment you’ll make to a supplier for goods or services, and
an expense, which relates to money you’ve already spent. Petrol's a good example of an expense.
Bills or supplier invoices are examples of things you’d enter as purchases. These should be entered into your accounts before you’ve paid them, so you can see what you need to pay in the future.
In MYOB Essentials, you can enter a purchase by selecting Create bill from the Purchases menu. This lets you enter the information you need, and then track what you owe to each supplier and when it’s due.
If you’ve already spent the money, you should enter the expense using Spend money (in the Banking menu). Here’s that petrol example from earlier.
We’ve updated the menu to make the purchases functionality a little clearer for you, too.
Bills will take you to a list of your current bills. By default this list shows unpaid bills.
Create bill will take you to a page where you can create a new bill.
Pay bills lets you enter a payment you’ve made to a supplier (previously Enter Supplier Payment).
Purchase history provides a complete list of your purchases. By default it displays all purchases entered in the past month, including the date, the total and whether they’ve been paid. (Previously Expense history)
We’ve taken the opportunity to make a slight change to the Sales menu too, changing Enter customer payment to Take payments.
This renaming is the first stage of some changes to purchases in MYOB Essentials to help you better manage your bills and supplier invoices. Stay tuned, we’ll be in touch.