Possible consequences¶
Please read this article carefully as it contains important information concerning general ledger entries that you can create using Negative Sales.
Your own responsibility
Codadot Consultancy is not responsible or can be held liable for any document or invoice that has been posted wrongly to the general ledger. Users are expected to always verify the entries that will result from posting the document.
Ways of creating a negative line¶
There are two ways of creating a negative invoice line. The end goal is to have a line that has a negative field Amount (and Amount Including VAT). You can do this either by entering a negative quantity or a negative unit price
If you post negative lines with Type = Item or Type = Fixed Asset, you have to take extra care, as this could lead to unwanted scenarios in your general ledger and inventory.
Considerations for items and fixed assets¶
Using positive quantity, negative price¶
The combination of a positive quantity and negative prices results in a negative line amount.
- Your stock will decrease by the absolute quantity you've entered.
An item ledger entry will be posted by the system that shows that you've had one item delivered to your customer. Value entries will be created that have the unit cost that's normally used by the system. This field is available to edit, and it can be added via personalization, if you need to post the item ledger entry with a different valuation. - You pay the customer
A negative customer ledger entry will be posted by the system, which you can use to post payments.
This scenario is sometimes used in situations where you pay the customer to take care of processing the item for you.
Using negative quantity, positive price¶
The combination of a positive quantity and negative prices results in a negative line amount.
- Your stock will increase by the absolute of the quantity you've entered.
An item ledger entry will be posted by the system that shows you've received items from your customer.
Value entries will be created and the stock will be valued at the unit cost entered in the sales line. This field is available to edit, and it can be added via personalization. - You pay the customer
A negative customer ledger entry will be posted by the system, which you can use to post payments.
Often, the unit cost should be the absolute/reversed amount of the Amount field on the same sales line.
Item valuation
Please pay extra intention when posting negative sales invoice lines that contain a negative item quantity as the item will be valued by the unit cost from the line, and not the unit price of the line. The unit cost will be copied from the item card like it would in a regular sales invoice.