Debit Note / Credit Note Enhancements

Why would you need multiple special accounts.
If you can record all transactions (trust & business) of a single customer under accounts receivable, why can’t you put all the trust transactions into a single special account, leaving the business transactions within the accounts receivable.

This way, with your shared bank account (trust and business) you just need to proportion the deposits as required when received. They can then be edited to remove any imbalance, or via an end of month Journal which compares the customer special account balance v’s account receivable balance.

That is certainly one way to do it. Thanks

As a refresher, I found another situation where Credit/Debit Notes do not apply directly to invoices and where Payments/Receipts should directly reference Credit/Debit Notes.

The situation is refund of a cash transaction or previously settled invoice from locked periods:
https://forum.manager.io/t/receipt-refund-payment-refund/27311/4

In my country, the law is that, credit and debit notes are used to make an upward or a downward adjustment on a Tax invoice to correct a mistake on the Tax invoice. So if a mistake was made on a Tax invoice and so tax is undercharged for a customer, Tax Debit note will be issued to the customer to correct the initial invoice. The tax debit note has to display the initial invoice number and show all details that is necessary. In situations where a mistake was made and tax was overcharged to the customer, a tax credit note is used for a downward adjustment of the initial invoice amount. The same is done for suppliers.

You could issue a normal invoice and change the title to Tax Debit or Tax Credit as required

That is a wrong approach. That does not adjust the original invoice. This is for correcting an original invoice but not to create another invoice there is a difference.

I don’t understand. Are you saying you have to modify the original invoice? That would seem perverse

I am suggesting you create another ducument to correct the mistake

I am closing this topic to further discussion. It began six months ago with disagreements and misunderstandings over basic accounting practices concerning debit and credit notes, wandered into billable expenses and special accounts, detoured into various local customs and practices, and wound up as a dispute over transaction titles. Maybe someone else can follow the logic, but it escapes me.

I am not closing the topic to discourage or cut off discussion, but to organize it. If anyone has a legitimate point to raise, please restate your position or ask a question in a new topic.