Financial Entries
Overview
Financial Entries is the dedicated page for transactions that should not behave like normal operating expenses.
Use it for:
- prepaid expenses
- expense payables
- asset purchases
- capital contributions
- account transfers
This keeps everyday workshop spend in the regular Expenses flow, while giving accounting-aware treatment to items that affect assets, liabilities, equity, or cash movement differently.
On the page itself, you can:
- create new financial entries
- settle open payables
- add cash and bank accounts for transfers and settlements
- filter and search recorded entries
- review summary cards for prepaid balances, open payables, asset purchases, capital contributions, and transfers
How to Access Financial Entries
- Log in to your autoGMS dashboard.
- From the sidebar, open Finance.
- Click Accounting Entries.
- Click Add Financial Entry to create a new item.
Use Add Account on the same page to add cash or bank accounts for transfers and settlements.
The page also shows:
- a searchable entries table
- filters for entry type, status, and date range
- a right-side accounts panel for available financial accounts
When to Use Financial Entries
| Entry Type | Use It When | Why |
|---|---|---|
| Prepaid Expense | You paid now for something used over multiple months | It should be recognized gradually |
| Expense Payable | You want to record the cost now and pay later | It should remain open as a payable until settled |
| Asset Purchase | You bought equipment or another long-term asset | It should not inflate operating expenses immediately |
| Capital Contribution | The owner put money into the business | It affects equity and cash, not profit |
| Account Transfer | You moved money between your own accounts | It is not income or expense |
If the item is a normal day-to-day garage expense that should hit expenses immediately, use the regular Expenses page instead.
How To Use Each Entry Type
Prepaid Expense
Examples:
- annual software license
- annual insurance
- prepaid maintenance agreement
How to enter it:
- Click Add Financial Entry.
- Choose Prepaid Expense.
- Enter the description, amount, start date, term, and expense category.
- Optionally complete supporting fields such as vendor, payment method, reference, and notes.
- Review the amortization preview.
- Save.
Effect:
- recorded as a prepaid asset first
- recognized monthly over the selected term
- does not hit Profit & Loss in full on day one
Expense Payable
Examples:
- supplier invoice due next week
- bill received now but payment will happen later
How to enter it:
- Click Add Financial Entry.
- Choose Expense Payable.
- Enter the description, amount, due date, vendor, expense category, and payment status.
- Optionally complete payment method, reference, and notes.
- Save.
- When payment is made, click Settle from the Financial Entries page.
Effect:
- appears as an open payable until fully settled
- can be partially settled or fully settled
- settlements reduce the outstanding balance immediately
Asset Purchase
Examples:
- workshop lift
- diagnostic machine
- long-term tool or equipment purchase
How to enter it:
- Click Add Financial Entry.
- Choose Asset Purchase.
- Enter the asset name, amount, description, and asset class.
- Optionally complete vendor, payment method, reference, and notes.
- Save.
Effect:
- treated as an asset purchase
- excluded from ordinary operating expense totals on day one
Capital Contribution
Examples:
- owner adds funds to support the business
- initial or follow-up capital injection
How to enter it:
- Click Add Financial Entry.
- Choose Capital Contribution.
- Enter the amount, description, and contributor type.
- Optionally complete payment method, reference, and notes.
- Save.
Effect:
- treated as financing/equity activity
- does not appear as operating revenue
Account Transfer
Examples:
- bank to petty cash
- one bank account to another
How to enter it:
- Click Add Financial Entry.
- Choose Account Transfer.
- Select the source account and destination account.
- Enter the amount and description.
- Optionally add reference and notes.
- Save.
Effect:
- records the movement between your own accounts
- does not affect Profit & Loss
- does not change net cash flow
Important: You must have at least one financial account set up before recording transfers, and you typically need accounts available when settling payables as well.
Entry Form Fields
Every financial entry starts with the same core fields:
- Entry Type
- Date
- Description
- Amount
- Vendor
- Payment Method
- Reference
- Notes
Additional fields appear depending on the selected entry type:
- Prepaid Expense -- recognition start date, term months, expense category, and amortization preview
- Expense Payable -- due date, expense category, and payment status
- Asset Purchase -- asset name and asset class
- Capital Contribution -- contributor type
- Account Transfer -- source account and destination account
The right side of the dialog also shows a live preview so users can confirm the accounting treatment before saving.
Working With Payables
Payables are designed to stay open until they are settled.
On the main Financial Entries page:
- open payables show their outstanding amount in the table
- entries with an outstanding balance show a Settle action
- settlements can reduce the payable partially or fully
This makes the page the correct workflow for “record the cost now, pay it later” scenarios that should not be handled as ordinary expenses.
Creating Financial Accounts
Use Add Account when you need bank or cash accounts available for transfers and settlements.
For each account, you can set:
- Account name
- Account type (
bankorcash) - Default account status
The default account is intended to act as the primary account for settlement and transfer workflows.
Settlement Workflow
When you click Settle on an open payable, the settlement dialog lets you record:
- Amount
- Date
- Account
- Reference
- Notes
This is the correct way to reduce an open payable after payment has been made, instead of editing the original entry to mimic settlement manually.
Page-Level Summary and Guidance
The Financial Entries page also includes:
- top summary cards for entry count, prepaid balance, open payables, asset purchases, capital contributions, and transfers
- an accounts panel showing available financial accounts and which one is marked as default
- a What this does help card explaining the accounting treatment applied to items recorded on the page
These page-level elements are meant to help users understand the intended treatment before they post or settle entries.
How Financial Entries Affect Reports
| Report | Impact |
|---|---|
| Profit & Loss | Includes prepaid recognition and payable expense impact, but excludes transfers, capital contributions, and raw asset purchases |
| Financial Actuals | Includes recognized expense impact from prepaid items and payables |
| Balance Sheet | Reflects prepaid balances, open payables, asset purchases, and equity-sensitive items |
| Cash Flow | Reflects payment timing, settlements, investing outflows, and financing inflows |
| Aged Payables | Shows open expense payables until they are settled |
| General Ledger | Shows the transaction trail for financial entries and settlements |
Common Mistakes to Avoid
- Do not use Capital Contribution for customer revenue.
- Do not use Account Transfer for supplier bills.
- Do not use a normal Expense if you want the cost recognized across multiple months.
- Do not use Asset Purchase for ordinary rent, fuel, or subscriptions.
Methodology
Click the Methodology button in the report header to see how financial entries are classified and how they affect your balance sheet and cash flow.
Frequently Asked Questions
Can I still use the Expenses page?
Yes. Regular operating costs should still go through Expenses.
Can I part-pay a payable?
Yes. Partial settlement reduces the outstanding balance and keeps the remainder open.
Why does a prepaid item not appear fully in Profit & Loss immediately?
Because it is recognized over time instead of being expensed all at once.
Do account transfers affect profit?
No. They are not revenue and not expense.