Thank you for excellently articulating a problem I have with manager.
My use case, I use (a part of) the tax summary report for reporting income to our landlord (contractual requirement), however I often appear to have income where it was the return of a purchase*. Because it is usually of a minor nature and doesn’t affect the grand scheme of things, I can largely ignore it.
However, it would be nice if it was recorded/reported correctly.
* I’ve re-created this in a test business, and this is the scenario I have purchased $100 worth of something, I paid for it the next day and returned it a while later. The whole thing appears as “Net Sales” and “Net Purchases” in the tax summary. This COULD be a potential problem if the values were more significant, but they aren’t.
secondary note: I am not using journal entries, all my data entry is entered directly into invoices and like fields.
I feel like there would be a way to get this recorded so that it doesn’t happen.
I have managed to do it now, but this has been as a result of me sitting here plugging away at it, I’m not sure if it would stand to scrutiny, I think it would.
I was about to NOT post it here as it is kind of off topic, however, it’s on point that net sales/purchases appear and I need a way to make them NOT appear, this is how I dealt with it (although I am not about to go through and re-apply this to 3 years of entries):
I have a supplier with one invoice:
This is the invoice:
Create a debit note and receive a payment:
In the end, the purchase invoice balances:
And the tax audit and summary now post the correct values:
Without that debit note, no amount of juggling the values (that I could find) would get both reports correct.
Lesson (for me):
Don’t return an item without a debit note (in manager).
Perhaps there is a way to do the same for journal entries?