Amounts belonging to expense accounts entered on a Receipt are shown under income in Project summary

1

Hi,

When I enter an receipt like this:

receipt
receipt1406×408 41.6 KB

which is typical for how I would get paid from Amazon (payment for order + deductions), the amount belonging to the expense account is treated as contra Income under Project

project
project884×100 10.4 KB

However, a custom report for the Project will report the amount as an expense under the expense account.

Screenshot 2024-09-25 143838

Shouldn’t Project also treat the amount as an expense if it belongs to an expense account? The current way would show Projects as having no expense because the income is the net of income + expense.

2

Not sure what the problem is. You put a -100 under electricity as part of a receipt, so in essence you paid 100 for electricity which is an expense account.

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3

Yes, I did pay $100 for electricity. The question is shouldn’t this $100 show as an expense under Project Summary rather than negative $100 in income? The amount belongs to an expense account so I thought it should show under expense.

4

Enter it as a payment not a receipt

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5

Manager’s classification at least for tax is based on what you set for the transactions contract

  • customer → sales
  • Supplier → purchases
  • Other → dependent on the sign of the amount for each line item

In the transaction you have shown two parties are involved (both lines do not relate to a customer or supplier) so choose “Other”

7

I tried your suggestion but the Project summary is still counting the electricity charge as negative income.

8

This is the best solution so far.

  • Purchase Invoice to set the details, Project, and Division
  • Payment to against Purchase Invoice
  • This also makes batch creation of Receipts a lot simpler
9

You have probably setup your electricity account incorrectly

10

Is it possible to forbid minus figuers in receipt transaction?

11

No, it may be an issue for your specific situation, but others like us, like the ability to adjust or correct entries using negative amounts in receipts. They help:

  1. To adjust for customer overpayments or invoicing errors.
  2. To reflect discounts or rebates given after the original sale.
  3. To reverse incorrect entries while keeping a clear audit trail, and;
  4. To account for returned or misrecorded stock or reverse a sale or purchase when goods are returned.
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12

That would create more problems than it solves.

You can have negative figures in documents for countless reasons, like reversals, discounts, adjustments and other line calculations – as @eko already explained – and hence, this is a much needed feature and its benefits far outweigh any trivial teething problems experienced by users.

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