Recording Expenses

Overview

Recording expenses ensures all organizational spending is tracked in Agatabo. This maintains accurate financial records, enables budgeting, and generates complete financial reports. Expenses can be paid from bank account cash or funded from reserve allocations.

Before You Begin

Prerequisites:

You have expenses:write permission
You have a receipt or documentation for the expense
You know which bank account paid the expense (or which reserve funded it)
You’ve decided on a clear, descriptive title for the expense

Recording a Standard Expense

Step 1: Navigate to Expenses

Open Expenses section

Click Expenses in the left sidebar

Click Record Expense or Add Expense

Opens the expense recording form/dialog

Step 2: Fill Required Fields

Required Information:

Field	Description	Validation
Title	Short description of expense	Required, non-empty string
Amount	How much was spent	Required, minimum 0.01
Date	When expense occurred	Required, ISO date (can be past)

Example values:

Title: “Office Rent - June 2026”
Amount: 150000 (or 150,000 RWF)
Date: 2026-06-08

Title field is NOT “Category”: The backend uses a free-form title field, not a predefined category dropdown. Use clear, consistent titles to organize your expenses.

Step 3: Fill Optional Fields

Optional Information:

Field	Description	Default
Bank Account	Which account paid the expense	Falls back to default account
Description	Detailed explanation of the expense	None
Documents	Upload receipts, invoices, or references	None
Bank Charge Amount	Additional bank service charge	0 (no charge)

Description tips:

Explain what was purchased and why
Include relevant details (period, vendor, purpose)
Example: “Monthly office space rental at Kimihurura for June 2026, paid to Landlord ABC”

Documents:

Upload photos or PDFs of receipts
Store invoice copies
Keep audit trail of supporting documentation

Step 4: Add Bank Charge (Optional)

If the expense incurred a bank service charge (transaction fee, wire fee):

Enter Bank Charge Amount field

Add the additional bank fee amount

System creates linked entry

Agatabo automatically creates separate BANK_CHARGE journal entry

Total deduction

Bank account decreases by expense amount + bank charge

Example:

Expense Amount: 200,000 RWF
Bank Charge Amount: 3,000 RWF
Total Bank Deduction: 203,000 RWF

Creates 2 journal entries:
1. EXPENSE_PAYMENT: 200,000 RWF
2. BANK_CHARGE: 3,000 RWF (auto-linked to expense)

Step 5: Submit

Review all fields

Verify title, amount, date, and bank account are correct

Click Save or Record Expense

Creates the expense record with journal entries

Confirm success

Expense appears in expense history

Verify bank balance

Check bank account balance decreased correctly

Recording a Reserve-Funded Expense

For expenses paid from designated reserve allocations (emergency fund, specific reserve):

Step 1: Navigate and Start

Open Expenses section

Click Expenses in sidebar

Click Record Expense

Opens expense form

Step 2: Fill Expense Details

Fill the same required fields:

Title: Descriptive expense name
Amount: How much to spend from reserve
Date: When expense occurred

Step 3: Select Reserve Allocation

Find Reserve Allocation field

Dropdown or selector for reserve funds

Select the reserve

Choose which reserve fund to draw from (e.g., “Emergency Fund”, “Equipment Reserve”)

Verify sufficient balance

Reserve must have enough balance for the expense

Step 4: Optional Bank Account

Reserve-funded expenses behavior:

Bank account is optional (can be omitted)
If provided: System releases reserve TO that account, then pays expense FROM it
If omitted: Uses default bank account

Step 5: Submit

Review details

Verify reserve allocation and amount

Click Save

Creates TWO journal entries automatically

Verify results

Reserve balance decreased
Expense recorded
Bank balance unchanged (released then spent)

What happens:

Reserve-funded expense: 100,000 RWF from Emergency Fund

Journal Entry 1 - Reserve Release:
Dr CASH (Bank Account)              100,000
   Cr RESERVE_ALLOCATION (Emergency)  100,000

Journal Entry 2 - Expense Payment:
Dr OPERATING_EXPENSE               100,000
   Cr CASH (Bank Account)          100,000

Result:
- Emergency Fund: -100,000 RWF
- Bank Account: Unchanged (released then spent)
- Expense recorded: +100,000 RWF

Learn more about reserves →

Recording with Bank Charge

Complete example of expense with bank charge:

Scenario: Pay Supplier with Wire Fee

Details:

Supplier payment: 500,000 RWF
Wire transfer fee: 5,000 RWF
Total cost: 505,000 RWF

Steps

Fill expense fields

Title: “Payment to Supplier XYZ”
Amount: 500,000
Date: 2026-06-11
Bank Account: Operations Account
Description: “Purchase order #456 - Office furniture”

Add bank charge

Bank Charge Amount: 5,000

Submit

System creates 2 linked journal entries

Result:

Entry 1 - Main Expense:
Dr OPERATING_EXPENSE (Supplies)  500,000
   Cr CASH (Operations)          500,000

Entry 2 - Bank Charge (auto-linked):
Dr BANK_CHARGE_EXPENSE  5,000
   Cr CASH (Operations)  5,000

Total Bank Decrease: 505,000 RWF
Expense shows in history with linked bank charge

What Happens When You Record

When you submit an expense, Agatabo automatically:

Validates inputs:
- Amount >= 0.01
- Title is non-empty
- Date is valid ISO format
- Bank account exists and is active
- Reserve has sufficient balance (if reserve-funded)
Creates journal entries:
- Main expense entry (EXPENSE_PAYMENT or RESERVE_EXPENSE)
- Reserve release entry (if reserve-funded)
- Bank charge entry (if bank charge amount provided)
Updates balances:
- Reduces bank account balance (CASH ledger)
- Reduces reserve balance (if reserve-funded)
- Records expense in OPERATING_EXPENSE or BANK_CHARGE_EXPENSE
Records metadata:
- Creates ExpenseMeta record with all details
- Links to journal entries
- Stores documents as JSON
Logs audit trail:
- Records who created the expense
- Timestamp of creation
- IP address and user agent (if available)
Updates reports:
- Appears on Profit & Loss statement
- Shows in expense history
- Affects financial metrics

Editing Expenses

You can edit expenses to correct errors or update information.

How to Edit

Navigate to expense history

Expenses → View History or List Expenses

Find the expense

Search or browse for the expense to edit

Click Edit

Opens edit form with current values

Update fields

Change any field (title, amount, description, date, etc.)

Submit changes

System uses reverse-and-repost pattern

What You Can Change

All fields are editable:

Title
Amount
Date
Description
Bank account
Reserve allocation
Bank charge amount
Documents

How Editing Works (Reverse-and-Repost)

Important: Agatabo doesn’t modify existing entries. Instead:

Reverses old entries:
- Creates reversal of main expense
- Reverses linked bank charge (if exists)
- Reverses reserve release (if reserve-funded)
Creates new entries:
- Posts new expense with updated values
- Creates new bank charge (if amount provided)
- Creates new reserve release (if reserve-funded)
Maintains audit trail:
- Old entries remain visible as REVERSED
- New entries show as POSTED
- Complete history preserved

Example:

Original Expense:
- Title: "Office Supplies"
- Amount: 50,000 RWF
- Date: 2026-06-01

Edit to:
- Title: "Office Supplies - Printer Ink"
- Amount: 55,000 RWF
- Date: 2026-06-01

Result:
- Old entry: REVERSED (Dr CASH 50,000 / Cr OPERATING_EXPENSE 50,000)
- New entry: POSTED (Dr OPERATING_EXPENSE 55,000 / Cr CASH 55,000)
- Net effect: Additional 5,000 RWF expense

Constraints on Editing

Cannot edit if:

❌ Expense is in closed accounting period
❌ Expense has already been reversed
❌ You don’t have expenses:write permission

Can edit:

✅ Any POSTED expense in open period
✅ All fields including amount and date
✅ Can change from standard to reserve-funded (or vice versa)

Deleting Expenses

You can delete expenses if they were recorded in error.

How to Delete

Navigate to expense history

Expenses → View History

Find the expense

Locate the expense to delete

Click Delete

Opens confirmation dialog

Confirm deletion

System reverses all entries

Verify results

Expense removed from history (or marked as reversed)
Bank balance restored
Reserve balance restored (if applicable)

What Happens During Deletion

Reversal process:

Reverses main expense:
- Creates reversal entry: Dr CASH / Cr OPERATING_EXPENSE
- Restores bank account balance
Reverses bank charge (if exists):
- Reverses linked bank charge entry
- Restores additional bank fees
Reverses reserve release (if reserve-funded):
- Reverses reserve release entry: Dr RESERVE_ALLOCATION / Cr CASH
- Restores reserve balance
Updates metadata:
- Marks expense as deleted
- All journal entries show status: REVERSED
- Audit trail maintained

Example:

Delete expense: 100,000 RWF from Emergency Reserve

Original Entries (reversed):
1. Reserve Release: Dr CASH 100,000 / Cr RESERVE 100,000
2. Expense: Dr EXPENSE 100,000 / Cr CASH 100,000

Reversal Entries (created):
1. Reverse Expense: Dr CASH 100,000 / Cr EXPENSE 100,000
2. Reverse Reserve: Dr RESERVE 100,000 / Cr CASH 100,000

Net Effect:
- Reserve balance: Restored (+100,000)
- Bank balance: Unchanged
- Expense removed from reports

Constraints on Deletion

Cannot delete if:

❌ Expense is in closed accounting period
❌ Already reversed/deleted
❌ Don’t have expenses:write permission

Warning:

Deletion may create negative balance if bank account doesn’t have sufficient funds
Use skipNegativeBalanceCheck parameter if intentional

Common Scenarios

Scenario 1: Monthly Recurring Expenses

For expenses that happen every month (rent, salaries, utilities): Best practice:

Create a checklist

List all recurring expenses with amounts and due dates

Record at consistent time

E.g., first business day after payment

Use consistent titles

Format: “Expense Type - Month Year” Examples: “Office Rent - June 2026”, “Treasurer Stipend - June 2026”

Set reminders

Calendar alerts to record on time

Example recurring expenses:

Title: "Office Rent - June 2026"
Amount: 150,000 RWF
Date: 2026-06-01
Bank Account: Operations Account
Description: "Monthly office rental at Kimihurura"

Title: "Treasurer Stipend - June 2026"
Amount: 50,000 RWF
Date: 2026-06-30
Bank Account: Operations Account
Description: "Monthly treasurer compensation"

Scenario 2: Recording Reimbursements

If reimbursing a member who paid on behalf of the organization:

Record the actual expense

Use the real expense title and date when member paid

Note reimbursement in description

Example: “Taxi fare for bank trip (reimbursing Jane Uwase)”

Pay the member separately

Via bank transfer, cash, or credit to savings

Example:

Title: "Transportation - Bank Trip"
Amount: 15,000 RWF
Date: 2026-06-05 (when member paid)
Description: "Taxi fare to BK Bank for deposit (reimbursing Jane Uwase)"
Bank Account: Operations Account

Then separately:
- Transfer 15,000 RWF to Jane's savings OR
- Give Jane 15,000 RWF cash

Scenario 3: Emergency Expense from Reserve

Using emergency fund for urgent, unplanned expense:

Record expense

Fill title, amount, date as normal

Select Emergency Reserve

Choose “Emergency Fund” in Reserve Allocation field

Add detailed description

Explain why emergency fund was used

Submit

System releases from reserve and records expense

Example:

Title: "Office Generator Repair - Emergency"
Amount: 300,000 RWF
Date: 2026-06-10
Reserve Allocation: Emergency Fund
Description: "Generator broke down during meeting, required immediate repair to restore power. Invoice #GEN-456 from Repair Co."
Documents: [Upload invoice photo]

Result:
- Emergency Fund: -300,000 RWF
- Expense recorded: 300,000 RWF
- Bank balance: Unchanged

Scenario 4: Large Payment with Bank Charge

Significant payment with wire transfer fee:

Title: "Annual Audit Fee Payment"
Amount: 2,000,000 RWF
Date: 2026-06-15
Bank Account: Operations Account
Bank Charge Amount: 25,000 RWF
Description: "Annual audit services from ABC Auditors, fiscal year 2025-2026"
Documents: [Upload invoice]

Result:
- Main expense: 2,000,000 RWF (EXPENSE_PAYMENT)
- Bank charge: 25,000 RWF (BANK_CHARGE, linked)
- Total bank deduction: 2,025,000 RWF
- Both entries appear in expense history

Scenario 5: Correcting an Error

Recorded wrong amount, need to fix:

Find the expense

Locate in expense history

Click Edit

Opens edit form

Update amount

Change from wrong amount to correct amount

Submit

System reverses old entry and creates new one

Example:

Original (wrong):
- Amount: 50,000 RWF (typo, should be 500,000)

Edit to:
- Amount: 500,000 RWF

Result:
- Old entry reversed: Dr CASH 50,000 / Cr EXPENSE 50,000
- New entry posted: Dr EXPENSE 500,000 / Cr CASH 500,000
- Net bank change: Additional -450,000 RWF
- Audit trail shows correction

Validation and Error Messages

Common Errors

Error Message	Cause	Solution
”Amount must be at least 0.01”	Amount is 0 or negative	Enter positive amount
”Title cannot be empty”	No title provided	Add descriptive title
”Invalid date format”	Date not in ISO format	Use YYYY-MM-DD format
”Bank account not found”	Invalid bank account ID	Select valid active account
”Insufficient reserve balance”	Reserve doesn’t have enough	Choose different reserve or reduce amount
”Cannot modify closed period”	Expense date in closed period	Change date or open period
”Idempotency key required”	Missing header	System should auto-generate

Validation Rules

Amount:

✅ Must be >= 0.01
✅ Must match currency decimal places
❌ Cannot be 0 or negative

Title:

✅ Must be non-empty string
❌ Cannot be blank spaces

Date:

✅ Must be valid ISO date (YYYY-MM-DD)
✅ Can be in the past
❌ Cannot be in closed period
❌ Cannot be future date (some implementations)

Bank Account (if provided):

✅ Must exist in organization
✅ Must be active
Falls back to default if omitted

Reserve Allocation (if provided):

✅ Must exist and be active
✅ Must have sufficient balance
✅ Balance >= (expense amount + bank charge amount)

Best Practices

Expense recording tips:

Record expenses within 1 week of occurrence (fresher memory)
Keep physical receipts in organized file or envelope
Take photos of receipts for digital backup (upload as documents)
Use clear, consistent title format: “Category - Description - Period”
Include detailed descriptions for amounts over 100,000 RWF
Require approval workflow for large expenses (implement externally)
Review expense trends monthly to catch unusual spending patterns
Separate personal expenses from organizational expenses (never mix)
Use reserve-funded expenses for emergency or planned reserve spending
Always include bank charges when applicable (don’t hide fees)
Reconcile bank statements monthly to catch missing expenses
Close accounting periods regularly to lock historical data

Permissions Required

Action	Permission	Scope
Record expense	`expenses:write`	ANY
Edit expense	`expenses:write`	ANY
Delete expense	`expenses:write`	ANY
View expenses	`expenses:read`	ANY

Typical access: Accountants and Administrators have expenses:write. Regular members may have expenses:read (view only) or no access.

Expenses Overview

Understand expense types and integration

Expense Categories

Organize spending by category

View Expense History

Browse and analyze past spending

Bank Accounts

Learn about bank account tracking

Reserves

Understand reserve allocations

Profit & Loss Report

See expense impact on profitability

​Overview

​Before You Begin

​Recording a Standard Expense

​Step 1: Navigate to Expenses

​Step 2: Fill Required Fields

​Step 3: Fill Optional Fields

​Step 4: Add Bank Charge (Optional)

​Step 5: Submit

​Recording a Reserve-Funded Expense

​Step 1: Navigate and Start

​Step 2: Fill Expense Details

​Step 3: Select Reserve Allocation

​Step 4: Optional Bank Account

​Step 5: Submit

​Recording with Bank Charge

​Scenario: Pay Supplier with Wire Fee

​Steps

​What Happens When You Record

​Editing Expenses

​How to Edit

​What You Can Change

​How Editing Works (Reverse-and-Repost)

​Constraints on Editing

​Deleting Expenses

​How to Delete

​What Happens During Deletion

​Constraints on Deletion

​Common Scenarios

​Scenario 1: Monthly Recurring Expenses

​Scenario 2: Recording Reimbursements

​Scenario 3: Emergency Expense from Reserve

​Scenario 4: Large Payment with Bank Charge

​Scenario 5: Correcting an Error

​Validation and Error Messages

​Common Errors

​Validation Rules

​Best Practices

​Permissions Required

​Related Topics

Expenses Overview

Expense Categories

View Expense History

Bank Accounts

Reserves

Profit & Loss Report

Overview

Before You Begin

Recording a Standard Expense

Step 1: Navigate to Expenses

Step 2: Fill Required Fields

Step 3: Fill Optional Fields

Step 4: Add Bank Charge (Optional)

Step 5: Submit

Recording a Reserve-Funded Expense

Step 1: Navigate and Start

Step 2: Fill Expense Details

Step 3: Select Reserve Allocation

Step 4: Optional Bank Account

Step 5: Submit

Recording with Bank Charge

Scenario: Pay Supplier with Wire Fee

Steps

What Happens When You Record

Editing Expenses

How to Edit

What You Can Change

How Editing Works (Reverse-and-Repost)

Constraints on Editing

Deleting Expenses

How to Delete

What Happens During Deletion

Constraints on Deletion

Common Scenarios

Scenario 1: Monthly Recurring Expenses

Scenario 2: Recording Reimbursements

Scenario 3: Emergency Expense from Reserve

Scenario 4: Large Payment with Bank Charge

Scenario 5: Correcting an Error

Validation and Error Messages

Common Errors

Validation Rules

Best Practices

Permissions Required

Related Topics