Hi,
I created a debit note for a credit from a supplier. Entered the date, supplier name, description and an invoice number, but the account goes into suspense. I cannot figure out what account to put it under, as in the drop-down list for accounts, it shows only the Income section (for my consultation fees and maintenance contracts) or Expenses (where I have overheads, insurance, rent, wages etc) or Fixed Assets (tools) or Liabilities (Business loan, employee clearing acct).
None of these options are suitable, so I’m at a loss as to what account I should put a debit note into??
Thanks for any help!
Please do not use private messages for general questions about using Manager. Yours has been moved to the public forum.
Line items on debit notes should be posted to the same accounts where the corresponding line items on the purchase invoice being adjusted was posted. Have you read the Guide: Use debit notes for supplier returns and refunds | Manager?
I can’t seem to post on a public forum, when i click on my name, it has a message Icon which I clicked on to write a post? Where does it say, post question on public forum?
I read the guide, but the account the invoice was posted on was Billable Expense, and the debit note form does not have that option to choose from in the drop down box.
you either post your questions in a similar topic on the forum
or you create a new topic in case there are no similar topics to your issue.
To communicate on the public forum, you never need to click your name.
I can confirm this so I any going to make this a bug.
Any account selectable under Purchase Invoice should also be selectable under Debit Note.
In the meantime, as a workaround, edit the Purchase Invoice value to another account and use that for the Debit Note.
PS: I have removed your solution tick, whilst that post did answer your “how to post” question, your original topic issue hasn’t had a solution.
There is another thread started by the same person: Creating debit note directly from purchase invoice. It contains some relevant discussion.
The issue with billable expenses is that they are not in an expense account of the business to offset with a debit note, because they were passed through to the customer. So it really does not make sense to include the Billable expenses account as an option. We will see what @lubos thinks.
Nor are Fixed Assets, Capital Accounts or Inventory an expense account of the business, yet they can all be offset with a debit note.
If you can create a Purchase Invoice with a Billable Expense + Customer allocation then you should be able to reverse that Purchase Invoice allocation with an identical Debit Note allocation.
Debit Notes aren’t limited by any asset, liabilities, equity, income or expense classification, nor should it be restricted by any sub-account type.
I mentioned expense accounts because that is what @Stacey asked about. All your examples involve transactions that contribute to financial reports of the business. Billable expenses do not.
But they do require something to reverse, and after billable expenses are invoiced to the customer, there is nothing on your books that can be reversed. If you are going to argue that Manager should allow reversing something not present, why don’t you suggest how?
Where did they ask about expense accounts ?
What they actually asked was: “as to what account I should put a debit note into??”
Which you answered with in post #2:
Line items on debit notes should be posted to the same accounts where the corresponding line items on the purchase invoice being adjusted was posted. Have you read the Guide:
With which they responded with in post #3:
I read the guide, but the account the invoice was posted on was Billable Expense, and the debit note form does not have that option to choose from in the drop down box.
Therefore, both your own advice and the Guide conflicted with their situation, hence the bug.
What! Billable expense transactions form part of the Balance Sheet financial report - albeit a contra. That’s a kin to saying that clearing account transactions don’t exist.
Well there is but that is outside the ambit of this topic.
However, once again, you are introducing a self fore filling artificial expansion of the topic.
Please re-read the opening post where it clearly states: “a credit from a supplier”.
It is fair to assume from reading that opening post that in receiving a credit note from a supplier, that the customer hadn’t yet been invoiced. Lets keep the cart behind the horse.
No where in this topic have I ever suggested or argued anything like what you are asking.
My sole focus has always been about answering the core of the topic - reversing of the Purchase Invoice via Debit Note - not your artificial expansion of the topic…
However, to answer your point, first you would issue the customer with a credit note for the “returned” billable expense, that would re-instate the billable expense into the accounts, then you would apply the debit note. That is the accounting principle, how Manager allows or doesn’t allow that to happen, I am not going to entertain.
As you pointed out yourself two paragraphs after the above quote, she wrote that the invoice was posted to Billable expenses. So I addressed expense accounts.
Not after they’ve been invoiced.
You have no basis whatsoever for this assumption.
Now who is expanding the topic? There was no indication whatsoever that the customer returned anything. We only know the supplier issued a credit note to the business. This could have been for a quantity discount, a billing error, or other event unconnected to the ultimate customer. In fact, your unsubstantiated assumption that the customer had not been invoiced yet would render a credit note completely inappropriate.
Fixed in the latest version (19.11.98)
The way it’s fixed is that you can select Billable Expenses account on debit notes which will then create negative billable expense.