Expense Management Guide

Product: Lofty Golden Oil ERP
URL: https://loftygoldenoil.com
Applicable Roles: Accountant, Admin

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Overview

The Expense Management module provides a complete workflow for recording, tracking, approving, and reporting business expenses. Every expense is categorized, tracked through an approval workflow, and flows directly into the Profit & Loss Statement for accurate financial reporting.

Expenses are stored in the expenses table with full audit logging via the audit_log table.

Access: Navigate to Expenses in the left sidebar. Only users with the Admin or Accountant role can access this module.

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Expense Categories

The system uses 10 predefined expense categories. Each expense must be assigned to exactly one category.

Category	Typical Use
Rent	Office or warehouse rental payments
Utilities	Electricity, water, internet, phone bills
Salaries	Employee wages, bonuses, commissions
Transportation	Fuel, vehicle maintenance, logistics, delivery costs
Marketing	Advertising, promotions, branding materials
Office Supplies	Stationery, printer supplies, consumables
Maintenance	Equipment repair, facility maintenance
Taxes	Government levies, filing fees, penalties
Insurance	Business insurance premiums
Other	Miscellaneous expenses not covered above

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Viewing Expenses

1. Click Expenses in the left sidebar.
2. The Expense Management page loads with a DataTable displaying all recorded expenses.

Table Columns

Column	Description
Date	Date the expense was incurred
Category	The assigned expense category
Description	Brief narrative of the expense
Amount	Amount in Nigerian Naira (₦)
Payment Method	How the expense was paid (Cash, Bank Transfer, Cheque, POS)
Status	Current approval status (Pending, Approved, Rejected)
Vendor	Name of the vendor or payee
Actions	Edit, Delete, and other available actions

Filtering and Sorting

• Search: Use the search bar at the top of the table to filter by description, vendor, or reference number.
• Category Filter: Select a specific category from the Category dropdown to narrow results.
• Date Range: Use the date range picker to filter expenses within a specific period.
• Status Filter: Filter by Pending, Approved, or Rejected status.
• Sort: Click any column header to sort ascending or descending.

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Creating a New Expense

Step-by-Step

1. Click the + New Expense button on the Expense Management page.
2. The expense creation form opens.
3. Fill in the following fields:

Field	Required	Description
Date	Yes*	Select the date the expense was incurred. Defaults to today's date.
Category	Yes*	Select from the dropdown: Rent, Utilities, Salaries, Transportation, Marketing, Office Supplies, Maintenance, Taxes, Insurance, Other
Description	Yes*	Enter a clear, descriptive name for the expense (e.g., "June 2026 Electricity Bill — Ikeja Office")
Amount	Yes*	Enter the expense amount in ₦ (Nigerian Naira). Use whole numbers or decimals for kobo.
Payment Method	No	Select how the expense was paid: Cash, Bank Transfer, Cheque, or POS
Vendor	No	Enter the name of the vendor or payee (e.g., "Ikeja Electric PLC")
Reference Number	No	Enter a reference number for tracking (e.g., invoice number, receipt number, cheque number)
Notes	No	Add any additional notes or context about the expense

4. Click Save to record the expense.
5. The expense is created with a Pending status and appears in the expense list.

Required Fields

Fields marked with an asterisk (*) must be completed before the expense can be saved. The system will display validation errors if any required fields are missing.

Example

Creating an electricity bill expense:

Field	Value
Date	2026-06-15
Category	Utilities
Description	June 2026 Electricity Bill — Ikeja Office
Amount	45,000.00
Payment Method	Bank Transfer
Vendor	Ikeja Electric PLC
Reference	INV-2026-0615-IE
Notes	Paid from operations account

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Expense Statuses

Every expense progresses through a workflow with three possible statuses:

Pending

• Badge color: Yellow
• Meaning: The expense has been created and is awaiting approval
• Who sees it: Admin and Accountant users
• What can happen: Can be approved, rejected, edited, or deleted

Approved

• Badge color: Green
• Meaning: The expense has been confirmed and authorized
• Who sees it: Admin and Accountant users
• What can happen: Included in P&L Statement and financial reporting. Cannot be edited or deleted (for audit integrity).

Rejected

• Badge color: Red
• Meaning: The expense has been denied
• Who sees it: Admin and Accountant users
• What can happen: Can be edited and resubmitted for approval. The status resets to Pending when edited.

Status Workflow

[Created] → Pending (Yellow)
                    ↓
            Approved (Green) → Included in financial reports
                    — OR —
            Rejected (Red) → Can be edited and resubmitted

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Approving or Rejecting Expenses

Only users with the Admin or Accountant role can approve or reject expenses.

Approving an Expense

1. Navigate to Expenses in the sidebar.
2. Locate the expense with Pending status in the table.
3. Click the Approve button in the Actions column.
4. A confirmation dialog appears:

   "Are you sure you want to approve this expense?"

5. Click Confirm.
6. The expense status changes to Approved (green badge).
7. The expense is now included in P&L calculations and financial reports.

Rejecting an Expense

1. Navigate to Expenses in the sidebar.
2. Locate the expense with Pending status in the table.
3. Click the Reject button in the Actions column.
4. A confirmation dialog appears:

   "Are you sure you want to reject this expense? You may optionally provide a reason."

5. Optionally enter a rejection reason in the text field.
6. Click Confirm.
7. The expense status changes to Rejected (red badge).
8. The expense creator can edit and resubmit the expense.

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Editing Expenses

1. Navigate to Expenses in the sidebar.
2. Locate the expense you wish to edit.
3. Click the Edit button (pencil icon) in the Actions column.
4. The expense form opens with the current values pre-filled.
5. Modify any fields as needed.
6. Click Save to update the expense.
7. If the expense was previously Rejected, its status resets to Pending for re-approval.

Note: Approved expenses cannot be edited. If an approved expense contains an error, create a new expense with a correcting entry and reject the original.

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Deleting Expenses

1. Navigate to Expenses in the sidebar.
2. Locate the expense you wish to delete.
3. Click the Delete button (trash icon) in the Actions column.
4. A confirmation dialog appears:

   "Are you sure you want to delete this expense? This action cannot be undone."

5. Click Confirm to permanently delete the expense.
6. The expense is removed from the table and the database.

Note: Deleting an expense is logged to the audit trail. Only Pending or Rejected expenses should be deleted. Approved expenses should be reversed through proper accounting procedures.

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Expense Reports

Filtering for Reports

1. Use the filter controls to narrow the expense list:

   • Category: Select one or more categories
   • Date Range: Set start and end dates
   • Status: Filter by Pending, Approved, or Rejected
   • Payment Method: Filter by Cash, Bank Transfer, Cheque, or POS
   • Vendor: Search by vendor name

2. The table updates in real time as filters are applied.

Exporting to CSV

1. Apply your desired filters to display the expenses you want to export.
2. Click the Export button (typically located near the top-right of the table).
3. A CSV file is generated containing all filtered expenses with their full details.
4. Save the file to your local machine.
5. Open in Microsoft Excel, Google Sheets, or any spreadsheet application for further analysis.

Suggested Reports

Report	Filters to Apply
Monthly Expense Summary	Date Range: 1st to last day of month
Category Breakdown	Filter by each category individually, export each
Unapproved Expenses	Status: Pending
Vendor Spending	Search by vendor name
Payment Method Analysis	Filter by each payment method

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Receipt Management

Receipts provide documentary evidence for expenses and are essential for audit compliance.

Attaching a Receipt

1. Create a new expense or open an existing expense for editing.
2. Locate the Receipt Upload field in the expense form.
3. Click Choose File or drag and drop a file into the upload area.
4. Supported formats: JPG, PNG, PDF.
5. Maximum file size: 10 MB.
6. The receipt file is attached to the expense record.
7. Click Save to store the expense with the receipt.

Viewing Attached Receipts

1. In the expense list, click the View or eye icon in the Actions column.
2. The expense detail view shows the attached receipt.
3. Click the receipt thumbnail to open the full-size image or PDF.

Receipt Best Practices

• Always attach receipts for expenses over ₦10,000.
• Ensure the receipt image is clear and legible.
• Include the date, vendor name, and amount on the receipt.
• Keep physical receipts as backup for digital copies.

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Using Expenses in P&L

Expenses recorded in the Expense Management module automatically flow into the Profit & Loss Statement.

How It Works

1. When an expense is Approved, it is included in P&L calculations.
2. The P&L Statement groups approved expenses by category.
3. The Expense section of the P&L shows:
   • Each expense category as a line item
   • The total amount for each category within the selected date range
   • The combined total of all expenses

P&L Integration Example

Approved expenses for June 2026:

Category	Amount
Rent	₦150,000
Utilities	₦45,000
Transportation	₦85,000
Office Supplies	₦12,000
Total Expenses	₦292,000

If Total Revenue for June was ₦500,000:

Net Profit = ₦500,000 − ₦292,000 = ₦208,000

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Budgeting Tips

Use the Expense Management module as the foundation for budgeting and financial planning.

Category-Based Budgeting

1. At the start of each month or quarter, set a budget target for each expense category.
2. Regularly review expenses by category to track actual vs. budgeted spending.
3. Export expense data to a spreadsheet and add a budget column for comparison.

Monthly Review Process

1. At month-end, filter expenses by the current month.
2. Export the data to CSV.
3. Open in a spreadsheet and group by category.
4. Compare totals to your budget targets.
5. Identify categories that are over or under budget.
6. Adjust spending or reallocate budget for the following month.

Expense Monitoring

• Check the Expense Management page weekly to review pending expenses.
• Approve or reject expenses promptly to maintain workflow efficiency.
• Review the P&L Statement monthly to understand overall financial health.
• Track vendor spending to identify opportunities for negotiation or consolidation.

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Role Access Summary

Action	Admin	Accountant	Other Roles
View Expenses	Yes	Yes	No
Create Expense	Yes	Yes	No
Edit Expense	Yes	Yes	No
Delete Expense	Yes	Yes	No
Approve Expense	Yes	Yes	No
Reject Expense	Yes	Yes	No
Export Expenses	Yes	Yes	No
Upload Receipts	Yes	Yes	No
View P&L Integration	Yes	Yes	No

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Troubleshooting

Issue	Solution
Cannot see Expenses in sidebar	Verify your role is Admin or Accountant
Expense not saving	Ensure all required fields (Date, Category, Description, Amount) are filled
Cannot edit approved expense	Approved expenses are locked; create a correcting entry instead
Receipt upload fails	Check file format (JPG, PNG, PDF) and size (max 10 MB)
Expense not appearing in P&L	Verify the expense status is Approved and falls within the P&L date range
Status stuck on Pending	Ensure an Admin or Accountant user is available to approve