Credit Note transaction values not shown for Control Accounts

Hello @lubos

19.1.23 Windows

So I have an account setup under Liabilities which is set as a Control account for tracking service items i receive and when i return the same back to the customer.

The account works fine when the inventory item is selected in Purchase Invoice and Sales Invoice. I can see the debit and credit amounts from the Summary page for the same.
But the same inventory item does not show or calculate the debit vales when selected in Credit Note. (I am not sure about Debit Notes as i have not checked.)

I have just filtered the credit note transactions since all the transactions will not fit on one page.

Also, the Tax column shows for only Purchase Invoices and not Sales Invoices. (I have selected tax rates for the item in Sales Invoice)

So am I doing anything wrong?

I think the issue is that you are trying to use inventory items the way they were not meant to be used.

For example, tracking a laptop as liability when it’s given to you by customer for repair. The laptop is not a liability from accounting point of view. In fact, it’s not accounting transaction at all because you are never in possession of the laptop. Laptop is owned by your customer at all times - even if it’s physically on your business premises.

yes i can understand the point you are trying to make.

but why do the same show correct values for purchase / sales invoices and not for credit notes?

when i am receiving a product for service, the value of the product is a liability for me as long as it is in my possession. it is not my asset or income or expense. so the liability adds up when i receive and reduces when i return the same to the customer.

after all i am not trying to track the quantity but the value alone which in my view is still accounting.

I would need to investigate further but I’m working on new way of handling inventory cost calculations so if there is an issue, it will be solved as a side-effect what I’m currently working on.

Actually no. If you want to pretend anything in your possession needs to be on your balance sheet, then value of the product is still asset on your balance sheet. Liability is what you owe to customer (since you didn’t pay them for the item). So you have two accounts.

  • One that represents asset that is in your possession
  • And one that represents liability is what you owe to customer for the asset

When asset is returned to customer, both accounts will offset each-other.

If you really want to pretend this is the case, use Special Accounts tab. Don’t use Inventory Items tab for this.