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# How to Create Expense via Bank Reconciliation?

* Bank Reconciliation in Refrens lets you record missing expenses directly from unmatched debit transactions — without leaving the reconciliation flow. 
* This ensures your ledger stays in sync with your bank statement and the expense is automatically created and marked as paid.

## ${color}[#000000](Before You Begin:)

Before you can create an expense through reconciliation, make sure you have:
* Uploaded your bank statement under **Bank and Payments section → Bank Reconciliation**
* Added the **transactions** from the statement
* Clicked **Start Reconciliation** to begin matching entries
* For above can Refer Article: [How to Upload a Bank Statement for Reconciliation?](https://help.refrens.com/en/article/how-to-do-bank-reconciliation-145sqgp/?bust=1775543587948)

## Steps to Create an Expense from a Missing Debit Entry
### Step 1 — Identify the Missing Entry
Once reconciliation starts, Refrens shows all unmatched transactions in the Missing in Ledger Dashboard.
Look for transactions that are:
* Listed under **Missing in Ledger**
* Have a transaction type of **DEBIT**
These are payments that went out of your bank account but haven't been recorded as expenses yet.


![](https://storage.crisp.chat/users/helpdesk/website/-/a/b/8/8/ab884d8153100800/screenshot-www-refrens-com-202_37taj5.png =858x400)


### Step 2 — Click "Create Expense"
Against the relevant debit transaction, click the **Create Expense** button.
This opens the **Record Expense** modal with some fields pre-filled from the bank transaction.

![](https://storage.crisp.chat/users/helpdesk/website/-/a/b/8/8/ab884d8153100800/screenshot-www-refrens-com-202_b1y1a7.png =680x318)


### Step 3 — Fill in the Expense Details
In the modal, the following fields are **pre-filled automatically**:
| Field | Source |
| ---- |
| Date | Taken from the bank transaction date |
| Amount | Taken from the transaction amount |
| Currency | Taken from the bank account currency |

Complete the remaining fields:
* **Vendor** — Select the vendor this expense was paid to
* **Expense No.** — Enter your internal expense reference number
* **Invoice No.** *(optional)* — Link to a vendor invoice if applicable
* **Tax & Rate** — Add GST or any applicable tax and its rate and if not, then NONE.
* **Expense Ledger** *(optional) *— Select the ledger account this expense should be categorised under (e.g., Office Supplies, Travel, Rent) or system will select the default expense ledger.
* **Notes** *(optional)* — Add any internal notes for reference
* **Attachments** *(optional)* — Upload bills, receipts, or supporting documents


![](https://storage.crisp.chat/users/helpdesk/website/-/a/b/8/8/ab884d8153100800/gif-4_2qp955.gif =771x350)


### Step 4 — Click "Record Expense"
Once all required fields are filled, click **Record Expense**.
Refrens will:
* **Create the expense** with payment already marked — no separate payment entry needed
* **Update the reconciliation** — the bank transaction is automatically marked as **Matched**

## ${color}[#000000](What Happens After Recording)
* The expense appears in your **Expenses** list with a** Paid **status
* The transaction moves from **Missing in Ledger** to the **Matched** section in Bank Reconciliation
* Your ledger and bank statement are now in sync for this entry

## ${color}[#000000](Tips)
* You can attach documents (bills, receipts) before saving in the attachment section for future reference.
* The expense ledger selection determines how the amount is categorised in your Profit & Loss report — choose carefully

## ${color}[#000000](Related Articles)
* [How to Upload a Bank Statement for Reconciliation](https://help.refrens.com/en/article/how-to-do-bank-reconciliation-145sqgp/?bust=1775543587948)?
* [How to Delete Statements, Bank Books, and Reconciliation Sets?](https://help.refrens.com/en/article/how-to-delete-statements-bank-books-and-reconciliation-sets-1lh6b1i/)