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Hi:
I understand the accounting concept of debit and credit and that a minus sign typically signifies "credit".
But, for a General Journal, how do you know whether the amount on a line should be positive or negative, for ANY of the combinations of fields and lines in a general journal?
Thanks!
John
This is great, Dirk! Thank you!
John
These are good explanations. I'm still confused on just one thing. For example, from the original post:
Account = Vendor
Amount decimal = negative
Bal. Account = Expense Account
Is that because the "Vendor", in that sense, represents the liability A/P account?
If that's the case, then I don't understand this:
A Payment can be registered
Account = Vendor
Amount decimal = positive
Bal. Account = bank/Cash Account
If the Vendor is A/P liability, then shouldn't it be negative?
Thanks, Dirk, for your help! Much appreciated!
John
with "opposite if Balance Account" I meant:
If the amount is positive (debit) ... it will be registered as debit for the "Account" and as negative (credit) for the "Balance Account".
A Payment can be registered
Account = Vendor
Amount decimal = positive
Bal. Account = bank/Cash Account.
or
Account = Bank/Cash
Amount decimal = negative
Bal. Account = Vendor.
And if you use the Document Type = Payment there is also a control regards the decimal sign
You cannot enter
Document Type = Payment
Account = Vendor
Amount decimal = negative
Bal. Account = bank/Cash Account.
I almost have it. What is meant by "opposite if Balance Account" especially with regard to:
Account = Vendor
Amount decimal = negative
Bal. Account = Expense Account.
What if an invoice or payment is involved?
John
Hi John,
This is how I look at this way:
The Amount always goes with the "Account" (opposite for the Balance Account).
That means ... it depends which accoutn you specify in the Account and which in the Bal. Account
Like:
If you want to regsiter expenses against a cash account
Account = Expense Account
Amount decimal = positive
Bal. Account = Cash G/L Account
or
Account = Cash G/L Account
Amount decimal = negative
Bal. Account = Expense Account
If you want to regsiter expenses against a vendor
Account = Expense Account
Amount decimal = positive
Bal. Account = Vendor
or
Account = Vendor
Amount decimal = negative
Bal. Account = Expense Account
But you can also use Debit and Credt Amount fields
(use field "Show Amounts" in General Ledger Setup to specify which amount fields you want to see in journals)
Please be aware:
If you use "negative decimal in the "Debit Amount" or "Credit Amount" field, then it will really be a negative amouunt in that field; meaning ... this is to correct wrong entries / to get Debit total and Credit total correct on G/L Accounts
Hope this helps
Dirk
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