Hey guys, Im not sure if I am doing this right but I charge customers a certain amount for freight and sometimes its not the exact amount as in this case, and I am putting them all in an expense account which I credit with how much I charge in the sales invoice and with payments I credit it with how much I am charged by the shipping company. Now why does it show my balance as negative when in fact its meant to be positive. TIA
Your expense account balance is negative because you have credited it with more than you have debited it. That is, overall, you have charged your customers more for freight than you have paid your suppliers. A negative expense account balance is equivalent to a positive income account balance.
Why is this a problem? And why do you expect the expense account balance to be positive if you are charging more than your costs?