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# How to Record and Activate Costs Tracking in Invoice123?

Tracking costs is a crucial aspect of maintaining a healthy financial state for businesses involved in trading or service provision. With Invoice123, you can effortlessly activate the Expenses functionality in our platform, enabling you to accurately and transparently track your business expenses. Stay on top of your financial health with ease and clarity.

### How to track expenses in Invoice123?
1. Select **EXPENSES** from the menu bar
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-06-05-at-11353_u06mlm.png)
2. Click **CREATE EXPENSE**
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-06-05-at-11364_12ls8t8.png)
3. Select the type of expenses
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-06-05-at-11372_no20f2.png)
4. Enter the **REFERENCE NUMBER**
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-06-05-at-11380_1xch33r.png)
||| You cannot issue two or more expense invoices with identical serial numbers to the same supplier.

5. Complete the **SELLER DETAILS**
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-06-05-at-11393_18z2qdy.png)
6. Fill in the details of the **PRODUCT/SERVICE** purchased
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-06-05-at-11401_1lqo60y.png)
| You can add additional **TYPES OF VAT** in the company's business settings, under **INPUT VAT**

7. Select the **TYPE OF EXPENSE**
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-06-05-at-11404_147xss.png)
### You cannot remove the following standard cost types from your settings:
* Common
* Representational
* Materials, supplies, raw materials and parts
* Fixed asset
* Taxes, fees and charges
| You can add additional **TYPES OF EXPENSES** in the company's activity settings, under **EXPENSES**

8. Create an expense
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-06-05-at-11411_cnfhnd.png)

### Additional settings
* Automatically consider all newly created expense as **PAID**
* Add additional **TYPES OF EXPENSES**
* Change the **PAYMENT TERM**
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-06-05-at-11413_1t55via.png)