The two functions allow you to keep track of the money spent by your business.
The main difference is that Expenses are regarded completed payments. By selecting Expenses-> Add (guide) you can register your purchase and at the same time the payment made for it. This is reflected in reports (expenses and purchases detail, cash flow/payment reports). Selecting a supplier is optional in Expenses-there are only three mandatory fields so you can fast register your business's expenses.
On the other hand, all of the invoices you have received from your supplier are considered 'Bills' - their payment will take place after they have been registered in the application. The function is also connected to the inventory (items list), allowing you to manage stock automatically for these items.
In other words, the cases for which adding a bill instead of an expense are the following;
- A product of your inventory
- Unpaid invoices and bills
Note: The 'expenses categories' are applied to both of the functions, so you achieve reporting on where all of the amounts you have spent have gone to, regardless of which function you chose to enter those amounts.
-> Example no 1:
A utilities bill, such 'gas', that will expire in an 'x' number of days and has not been paid yet can be entered as 'Bill'. This action will enable automated reminders that will help you pay off the bill on time.
If, however, you have just paid a utilities bill for your office and you simply mean to register the amount in the application, the easiest way would be to go to "Expenses" On both occasions you can select "Office expenses" or a create a custom expense category.
On the "Expenses by category" report, the two registrations will appear on the same line.
-> Example no 2
You have just received an order of products to re-sell, for which you manage stock through elorus's interface. The order has been pre-paid. Still, it is mandatory that your supplier's name is used and the stock change is properly registered.
The Bills function offers all of the above, making it the proper choice for this registration. In this case, you will again be able to apply an expenses category so the entry appears on the report.