Why do the costs on a journal entry show in the net sales column?

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@jhoney

Can you just post a screenshot of the journal entry itself?

Sure.
Lets say we need to do a journal correction and use Managers tax code facility on JE. To keep it simple we will just move expense account money ie recode a group of purchases. For example

The next day we get further advice and need to reverse the journal entry

We then check the summary screen to make sure this is all fixed (The test business contains only these two journal entries).

Then we check the tax audit report and all is OK there too

So we are very happy our accounts are back in order.
However at the end of the quarter when we go to submit our tax we discover we need to report a surprising volume of sales and purchases

What is happening is Manager accurately maintains the difference between sales and purchases so “Tax liability” (which is the difference between the sales & purchases) is correct. However Manager often does not know if a transactions is a Sale or Purchase so it has to guess. As a result in the tax summary report, all of the reported Sales and all of the reported purchases data is just a guess and mostly wrong.

To avoid reporting false data to their tax authority, the user needs to have an in depth knowledge of what causes Manager to falsify it’s reports. Given what is reasonable for most users to understand about Managers bugs that means

• Do not ever used tax codes on journal entries

• Use cash sales with real caution as they will sometimes corrupt your reportable sales & purchases.

• Use invoices where ever possible including to simulate journal entries

@IntoTheMirror

I’m afraid that the report is not correctly defined.

Agree

@IntoTheMirror

A journal entry is THE transaction type for making corrections.

Agree

@Joe91

I still think this should be corrected by posting a debit note and an purchase invoice or two purchase invoices,

In the context of Managers current behavior, not using JE is sensible however that is mostly because tax codes on JE corrupt Managers tax reporting.

@Tut

The use case does not even require an invoice. It can be handled as a cash transaction, although the same philosophy applies with invoices.

I had also assumed Manager used the receipt / Payment to identify Sales / Purchased however it uses the line item credit / debit so will produce the same error as a JE. Illustrated here for goods returns but the same error occurs with any negative line item in a sales or purchase transaction.

@Tut

I don’t see a problem. And you are the only user making such a complaint.

That is because most users assume an accounting program would produce accurate taxation data not just guess, I know I did.

@IntoTheMirror and @Hennie thank you for highlighting what Manager was actually doing. I had assumed Manager was not guessing how accounting data should be reported so corrupting it’s taxation data.

@jhoney Lubos actually summarized what is happening very well on his post above the implications however are rather disturbing.

An accounting program which produces false taxation data when used as it appears to be intended, has a critical bug. Optionally producing accurate data for submission to your tax authority is not just a idea for later.