Tuhund ERP Blog
Irfan Mustafa Qazi
Irfan Mustafa Qazi
17/12/2019 12:50 PM

Scheduled Expenses module in Tuhund ERP – Automating entry of recurring expenses

Very similar to automatic re-ordering of stock items triggered by stock levels, there are expenses that are triggered on specific dates. These are recurring expenses or periodic expenses. Recurring expenses fall under several categories based on fixed or variable amounts and availability or non availability of invoice numbers, etc. Scheduled Expenses module in Tuhund ERP lets you automate entry of these expenses, auto-completed till a predefined stage. This stage varies from case to case. There are specific reasons why every entry cannot be completed end to end and the primary reason is that for certain expenses amounts vary for every period, while for most, at least invoice number has to be entered manually after receiving invoice from the vendor or service provider.

Available options for selecting the stage till which Tuhund AI Demon should automatically process each purchase invoice against expense are as follows:

  1. Create as New and leave unsaved
  2. Create and send for approval
  3. Create pre-approved but do not auto-submit for accounting
  4. Create pre-approved and auto-submit for accounting
  5. Create and insert to books. Leave for accounting approval
  6. Create and post to books of accounts
  7. Create, complete and close (Fully Automatic Mode)

Scheduled Expenses module in Tuhund ERP

Examples of Scheduled Expenses in Tuhund ERP

Example 1 : Rent. For our example let us assume that landlord does not provide any receipt. Rent is accounted on the last day of every month, rent amount is fixed till there is an increment and a TDS (tax deducted at source) is applied at the rate of 10%. This process can be automated from end to end without manual intervention. Every month, on the last day of the month, Tuhund AI Demon will automatically create the purchase invoice for the rent expense entry. It will approve it leaving a comment why it is approving. It will post the invoice to the books of accounts as pre-approved transaction and it will close the record as completed and verified. Once you have created the schedule, you do not need to manually touch the system for this expense again, till there is a change. System will credit rent amount less TDS to the vendor (which is your landlord in this case) along with the entry of payable date. It will credit TDS to the relevant TDS ledger depending on the TDS policy, which by default is to create a separate TDS account for every Vendor. For countries, where there is no TDS or withhold tax concept, please ignore the TDS part.

Example 2 : Internet bill. For our example we assume we receive one bill every quarter before start of the quarter. Amount is fixed and so is the date. The only variable here is the invoice number. In such a case we will create a schedule entry to create the record till “Create pre-approved and auto-submit for accounting” stage. Tuhund AI Demon will create the record, approve it and send it to accounts for further processing. This will show the record to accounting staff as incomplete transaction. To complete this transaction they will just need to enter the invoice number and save. It is a single step short of auto-complete. System will auto-complete the process once again after invoice number has been entered.

Example 3 : Electric bill. We receive electric bill every month, but all parameters (amount, date, invoice number, due date) are variable. Sometimes meter reading is taken on 1st, sometimes on 2nd and very rarely, but sometimes on 3rd. In this case, it might look like manual entry makes more sense, but that is not the case. We have several knows in this case too. We know that there is an expense (electric bill) every month and we know the vendor. We will create a schedule to just create the record in un-saved status. The advantage is that we will never miss this entry. This unsaved record will show as pending till other data is not entered and record is not saved. Once saved, it will work like any other purchase invoice and that is as per other rules set. 

Scheduled Expenses is one of the modules in Tuhund that cuts down non-value adding work freeing up resources who can be used for more productive work. 

Labels :

auto-complete

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auto-submit

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transaction

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automating

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accounting

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productive

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schedule

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recurring

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expense

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automatic


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