How To: Create Invoice Expense Accounts

How To: Create Invoice Expense Accounts

End user  ·  Yellow Dog Inventory 2026

 WHY IT'S IMPORTANT

Invoice expense accounts let you record costs that appear at the bottom of an invoice — such as freight, taxes, and bottle deposits — and control whether each one affects an item’s tax, the line total, or both. Setting them up correctly keeps item costs and invoice totals accurate. To control how each expense spreads across invoice items, see Quick Reference: Distribution Methods for Invoice Expense Accounts.

 PREREQUISITES

•    Access to System Setup > Accounts

•    The GL account numbers you intend to map, aligned with your organization’s Chart of Accounts

 STEP BY STEP

Create an invoice expense account

1.  Go to System Setup > Accounts.

2.  Select the Invoice Expense Accounts tab.

3.  Click Create New Accounting Code.

4.  Enter the account details. Required fields are shown in red.

      a.   Description — The name of the expense as it appears on the invoice and throughout the Standard Reports.

      b.   Document Type — Describes the GL classification.

      c.    Distribution Type — Describes the GL distribution method, such as Direct or Indirect.

      d.   Default Distribution Method — Sets how the expense distributes across invoice items by default.

      e.   Affects Tax — Includes the expense amount in the invoice’s taxable total.

      f.     Is Tax — Identifies the expense itself as a tax.

      g.   Affects Total — Includes the expense in the invoice total.

      h.   Notes — A free-text field for comments or clarifications about the account.

      i.     Account Codes — Enter the Invoice Expense GL code for each store listed.

5.  Click Save and Close.

Figure: The Accounts Editor for a new invoice expense account, showing the field options and the per-store Account Codes table.

Note: Creating an invoice expense account follows the same process as creating an inventory account. The available fields differ: invoice expense accounts include the Affects Tax, Is Tax, and Affects Total options and a Default Distribution Method.

 BEST PRACTICES

•    Use clear, descriptive names so each expense is easy to recognize on invoices and in reports.

•    Align each GL code with your organization’s Chart of Accounts to simplify reconciliation.

•    Review your invoice expense accounts periodically and update them as your reporting needs change.

 RELATED ARTICLES

•    Invoice Expenses: Video

Last reviewed: June 2026  ·  Applies to: Yellow Dog Inventory 2026

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