# Expense Account

Expense Account defines the expense categories used when recording expenses. Each expense account sits in the chart hierarchy and links to expense transactions.

On this page

Overview List View Form Fields How It Works Actions FAQ Related

Overview

Go to Accounts → Settings → Expense Account from the left menu. Master data screens do not use Master Update — edit records directly from the list or view.

List View

List columns `Id`, `Name`, `Account Code`, `Description` Header actions: New Row actions: edit, view

Form Fields

| **Field** | **Description** | |-----------|-----------------| | (see below) | Exact labels from the create/edit form | Create / edit fields Name*, Account Code, Parent account, Description. Section Opening Balance: Has Opening Balance, As on date, Opening Balance Form buttons: Save, Update, Reset, Cancel (as applicable)

How It Works

Expense account on Expense entry

Each expense account is a ledger under the expense section of the Chart of Accounts. On Expense, the user selects an Expense Ac (expense account) for each line. On approve, the expense amount is debited to that account and credited to the payment account (cash, bank, credit supplier, prepaid, and so on).

Suspended expense accounts cannot be selected on new expenses; existing approved documents keep their account until edited.

Reporting and analysis

Expense accounts drive how operating costs appear on the income statement and in expense analysis reports. Filter or group by expense account to review spending by category.

Connected reports: Expense Report, Bill Wise Expense, Branch Wise Expense, Brand Wise Expense, Income Statement, Account Transactions.

Actions

| **Action** | **Where** | **Description** | |------------|-----------|-----------------| | New | List | Opens create form | | edit | List, View | Opens edit form | | view | List | Opens read-only view | | Delete | View | Removes the account | | Activate / Suspend | View (more menu) | Enables or disables the account |

FAQ

How is this different from Chart of Accounts?
Expense Account is a focused list of operating expense ledgers used on Expense Entry.

Can I suspend an expense account in use?
Suspended accounts cannot be selected on new expenses. Historical expenses keep the account.

Must every expense line have an expense account?
Yes on approve. Each line needs amount, expense account, date, and pay mode.

Do expense accounts appear on Income Statement?
Yes. Expense leaf accounts roll into P&L via Income Statement.

Can I set opening balance here?
Use Opening Balances for ledger opening entries.