Expense accounts are defined in the SAP Business One finance co-managed.
They are a structure that records a certain kind of cost, such as Depreciation. It is closed at the end of a financial period and transferred to the profit and loss account.
Expense accounts are used to categorise and track the costs and expenses of a business. They record all operating expenses incurred in the context of normal business operations. Expense accounts can be diverse and include such items as rent, wages and salaries, advertising costs, utilities, insurance premiums and many other types of costs. For each transaction that results in an expense, the corresponding amount is posted to the associated expense account. The entry is made on the debit side of the account, which means that the account is debited. For each transaction that results in an expense, the corresponding amount is posted to the corresponding expense account. The entry is made on the debit side, which means that the account is debited. The expense account normally has a debit balance because the expense reduces the financial performance of the business. A debit balance on an expense account shows how much money was spent on this type of expense during the reporting period.
