Skip to main content
C
cuawithya
February 24, 2020
Solved

How do I create expense types such as 'entertaining' under 'other expenses' so that the basic P&L report shows my taxable profit? It appears that new fields are blocked

  • February 24, 2020
  • 1 reply
  • 0 views
I'm trying to separate out any expenses that cannot be offset against corporation tax so that this can be more easily deduced from the P&L report
Best answer by GeorgiaC

Hello cuawithya, 

 

 

As long as the accounts have the same account type, e.g. Other expense, you can create sub-accounts under the parent category.

 

To create a sub account, go to Accounting > Chart of Accounts > Select the drop-down beside the account you wish to make a sub-account > Select Edit > Tick the check-box beside 'Is sub-account' and select the parent account on the drop-down. 

 

If you have an existing category for entertaining under a different account type, e.g. 'Expenses', you can change this to 'Other Expenses' to allow you to create sub accounts under this category.

 

Thanks

 

 

1 reply

G
GeorgiaCAnswer
February 24, 2020

Hello cuawithya, 

 

 

As long as the accounts have the same account type, e.g. Other expense, you can create sub-accounts under the parent category.

 

To create a sub account, go to Accounting > Chart of Accounts > Select the drop-down beside the account you wish to make a sub-account > Select Edit > Tick the check-box beside 'Is sub-account' and select the parent account on the drop-down. 

 

If you have an existing category for entertaining under a different account type, e.g. 'Expenses', you can change this to 'Other Expenses' to allow you to create sub accounts under this category.

 

Thanks

 

 

C
cuawithyaAuthor
February 24, 2020

Hi,

 

Thank you for the feedback. I have an existing category (account type 'Expense').  Using your method I have changed this to 'Other Expense' however the options for 'Detail Type' are far more limited. 

 

I was using 'Promotional Meals' but under 'Other Expense' this option is not available and eve using sub-account I can see how to create an option in this field. I simply want to move this and corporation tax out of expenses as it will give me a clearer view of my tax liability for the year.

M
MirriamM
February 24, 2020

Welcome back, cuawithya.

 

When creating an account, each Account Type has it's own list for the Detail Type.

 

You're correct that the Entertainment (Detail Type) falls on the Expenses (Account Type). Since each business has a unique structure, and it's the same with the accounts used when tracking transactions. That said, I suggest consulting an Accountant or a Tax professional. They can help you select for the specific account to set up.

 

To learn more about creating an account, check these articles:

If you have additional questions, just leave a comment below. I'm always here for you. Have a wonderful day ahead!

Terms & ConditionsAccessibility statement