Allow suppliers to be linked to billable expenses

Using Cloud Edition, Windows, 21.2.91

In previous we were able to to add accounts payable in purchase invoices it was appearing in supplier account. but now it is hitting the wrong supplier

Iam creating purchase invoice for supplier A to record a back charge cost to supplier B. In previous edition it is appearing under supplier B account but now it is deducted from supplier A.

please find below snip from system in edit mode

the system before was hitting the correct account as per below
Supplier A show Cr 4000
Supplier B Show DR 2500
Rent Exp Ac DR 1500

From My side I can see that this is a bug since the debit for supplier B is appearing in supplier A as per below

Thanks for support

If you select supplier B in the lines and it still goes to supplier A then that should be a bug.

This is a somewhat unusual situation in my experience, but I can replicate the problem. I believe, however, that @abdulbari’s explanation is not complete.

Let us look at what this purchase invoice actually records. Rent expense of 1500 is owed to Supplier A, presumably in response to a contract or sales invoice from Supplier A. At the same time, the purchase invoice records 2500 as also owed to Supplier A, to be posted to the Accounts payable subaccount of Supplier B. In other words, it records an obligation to pay 2500 more to Supplier A by owing 2500 less to Supplier B. (I assume that Supplier B owes 2500 to Supplier A, and the business at hand is functioning as a clearing house.)

What happened, though, is that the debit associated with the Accounts payable => Supplier B account on the purchase invoice was applied to Supplier A instead of Supplier B. Instead of reducing what is owed to Supplier B, it reduced the what is owed to Supplier A. It did so by applying the 2500 to the purchase invoice as thought the business had made a payment. In fact, the View screen will show that payment, coming from the same purchase invoice.

I am moving the topic to bugs. I have also edited the subject.

I have not tested this, but the same situation may occur with sales invoice cross-charging.

This is a bug but in a sense that on purchase invoice you shouldn’t be able to select Accounts payable account at all.

The mistake I made is that I disabled custom control accounts for suppliers to be used on purchase invoices but forgot to disable built-in accounts payable itself. So this was never actually functionality I intended to support.

As a workaround, you can create special account and use special accounts on purchase invoices to handle cross-charging.

Having this option is very helpful for back charge invoices. it is really reduce No of entries to be made and ease our work and very helpful to link and review entries.

If this option will not be available anymore we will use suggested solution.

I’m afraid I’m not going to support accounts receivable and accounts payable accounts on line items in invoices. There are technical reasons behind this.

So the question now is, why exactly do you need this feature? I don’t quite understand this concept “record a back charge cost to supplier”. Can you give some specific example? Perhaps the software can be extended in another way which will support this workflow better.

I wonder if this is part of a more general issue, how to better handle invoiced Barter transactions and Recipient-created tax invoices (RCTI) in Manager.

Thanks for Coming back to this subject

we have an agreement with supplier the service is equipment rental in our site. fuel charges it is supplier cost. since we are getting fuel for our equipment it was agreed to back charge the fuel charges for rented equipment.
earlier it was very easy since it will be charged to supplier within one step without any entry into clearing account
Dr Fuel Exps
Dr Equipment Rental Supplier Ac
CR Fuel Supplier

now it has to be done through clearing account with 2 to 3 steps

  1. purchase invoice for fuel supplier
    Dr fuel
    Cr fuel Supplier
    2 we had the option to use debit note or Journal Voucher
    Dr Equipment Rental Supplier Ac
    Cr Fuel Exps Ac

having all the information in one voucher is very helpful for tracing the information and having all supporting document in one voucher

since we would like to keep all the entries into one account we used to use this method. now we are using debit note for back charge

On customer-side this is elegantly solved by Billable Expenses tab. You are basically capitalizing expenses because they are not yours.

I think this is the same concept except your expense won’t be paid by customer, it will be paid by your supplier. Do you see it the same way?

yet it is same concept. Billable Expenses could be linked to debit note where the entry should be
in purchase invoice entry could be
Dr Billable Exps
Cr Fuel Supplier AC

in debit Note entry could be
Dr Equipment Rental Supplier Ac
Cr Billable Exps

We are on the same page. I’m adding this to ideas and will need to think through some details but I can imagine suppliers reimbursing you for some expenses can be quite common so could be supported within Billable expenses.