How to add Billed Expense as Journal Entry | Accounting Data as a Service™ Help Center

A billed expense is an expense that has been incurred by a company but has not yet been paid. Billed expenses are typically recorded as accounts payable, which represents the amount owed to a vendor or supplier for goods or services that have been received but not yet paid for. Once the billed expense has been paid, it is typically recorded as a cash or bank transaction, with the appropriate accounts being debited and credited based on the specifics of the transaction.

Accounting Example:

Parent Account	Account	Transaction / Reference	Date	Debit	Credit
Operating Expenses or Cost of Goods Sold	Travel	Expense / Expense	Jan 1, 2022	10.00	-
Accounts Payable	Accounts Payable	Expense / Expense	Jan 1, 2022	-	10.00

Leveraging Railz to use Journal Entries for billed expenses:

You may follow the below steps to add a billed expense as a Journal entry:

Determine the date and amount of the billed expense.
Identify the accounts that will be affected by the transaction. Typically, the accounts will be an expense account and a liability account.
Create a journal entry for the billed expense. The debit account will be the expense account, and the credit account will be the liability account.
Include a brief description of the billed expense in the journal entry. This could include the vendor name, the invoice number, or a description of the expense.
Post the journal entry.
Once the payment is made, create another journal entry to record the payment. The debit account will be the liability account, and the credit account will be the bank account or cash account that was used to make the payment.
Include a brief description of the payment in the journal entry. This could include the check number, the payment date, or a description of the payment.
Post the journal entry.

Payload example:

You can use our POST /journalEntries endpoint to add a $10 debit line item as an expense from the Operating Expenses or Cost of Goods Sold account and a $10 credit line item, for example for the cash account.

{
 "connection":
 {
   "businessName": "{{businessName}}",
   "serviceName": "{{serviceName}}"
 },
 "data":
 {
   "currency": "USD",
   "currencyRate": 1.3,
   "postedDate": "YYYY-MM-DD",
   "lines":
   [
     {
       "accountRef": "ID OF EXPENSE ACCOUNT FROM ASP - SEE COA END POINT ",
       "description": "LINE ITEM DESCRIPTION",
       "amount": 10,
       "type": "debit"
     },
     {
       "accountRef": "ID OF LIABILITY ACCOUNT FROM ASP - SEE COA END POINT ",
       "description": "LINE ITEM DESCRIPTION",
       "amount": 10,
       "type": "credit"
     }             
   ],
   "memo": "SOME MEMO"
 }
}

For more information: