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Hi:
As shown below, I at first received a Posting Preview error in a Purchase Journal when I placed a positive amount of $500.00 within the "Amount" field.
The error stated that a negative amount is required.
This surprised me, because everyone knows that a debit to an expense account is a positive amount.
Anyway, after deleting the record, re-entering it, and placing a positive $500.00 instead into the "Document Amount" field, the negative amounts filled in automatically within the "Amount" and "Amount ($)" field. This is shown, within the screenshot below.
Then, I was able to successfully post.
So, should I only concern myself with "Document Amount" when creating an invoice in the Purchase Journal?
Why would the Purchase Journal want a negative amount?
Thanks!
John
Amount sign requirements are determine by account type and document type.
Account type of vendor with document type of invoice, amount must be negative while a document type of credit memo is positive. The exact opposite is true for customers.
I never use document amount because I like to be sure of the amount and enter it myself.
Hi,
I suspect the "Document Type" is Invoice and the "Account Type" is Vendor in your purchase journal. If this is the case the number you enter into the amount must be negative, as you will be crediting the Vendor account when entering an invoice. (and the payables G/L account). You then enter the Expense code in the "Bal. Account No" which is debited.
You could turn this on its head and enter the GL code first and therefore have the "Document Type" as Invoice and the "Account Type" as G/L Account and enter your expense code. In this scenario you'd enter a positive in the amount, as you will debit the expense code when entering an invoice. You then enter the Vendor in the "Bal. Account No" which is credited
I've tried to explain this in the image below:
I also blogged about the issue here
Hope this helps
Thanks
Gavin
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