How to pass an Expense provision Entry if we have not received the Bills ?

How to pass an Expense provision Entry if we have not received the Bills ?

Step 1. Create a Ledger "Provision For Expense"(E.g. Provision for Electricity) under General Ledger-->>Chart Of Accounts-->>Liabilities.

Step 2. Go to General Ledger--->>Journal Entries

Step 3. Pass a journal Entries Debit Expense Account and Credit New Account created "Provision for Expense Account.

Step 4. When the Bill for the Expense will come or the Expense actually becomes due. You can pass a reverse Entry by Debiting the Provision for Expenses and creding the Expense Account.

Step 5. Book a new Invoice and Pass a Payment Entry against the same.

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