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accountingexpensesinvoicesbasics
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Steve Sharpe

I'm trying to use OpenERP for very basic accounting.  Make an invoice with 13% tax, and register a payment when the cheque arrives.  Later make payments to bills and have the sales tax get subtracted from tax owed to government.  Below our the issues I've had.  It's pretty tough to explain without a video so this is what I have so far: http://youtu.be/YLdkq1UtpqI

Issues:
- Starfleet invoice shows up as accounts receivable AND adds total amount twice to journal
- Treats our subspace transmission fees as an asset

Contract work for Starfleet
Rate: $16/hr
Tax: 13%
Hours: 20.5

Pay tariffs to the Klingon High Command for subspace communications with Starbase 301
Fixed rate $37 + 13% tax

What I would like to do:
1) Open a balance with owner’s cash for $10
2) bill Starfleet and mark the payment to bank account
3) pay the Klingon High Command and treat that as an expense and not a purchased asset

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michel Guénard
Best Answer

The journal entries view (not to consider this view with the trial balance of accounts) is showing each posting; therefore

as a purchase or a sale are creating a double entry (debit balancing with credit)

it shows 2 lines.

Debit expense account/ credit third party account

Then payments are creating 2 other lignes

debit: third party /credit bank for suppliers or reverse for customers

When you check the Trial balance you can verify that accounts payable and accounts receivable have a zero balance.

 

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Steve Sharpe
Author Best Answer

Thank you Ad Libitom.  This is when a non-accountant tries to use ERP software :)

I am puzzled however why this report is showing a loss when I've had sale of $328 and only one expense at $37.  The bank balance at the bottom is finally showing up as correct. That is a huge win!

Account financial report: https://drive.google.com/file/d/0B_Bf2KhKxRriVnZwODk0VlN2QzA

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michel Guénard

this huge profit probably due because no cost applied to the product/service you sold. how did you value the hourly cost of your service to Starfleet

Steve Sharpe
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I charged Starfleet 20.5 hours at $16/hr. After you've showed my the trial balance and where it is I have been working on recreating my database with the business data so the dates actually make sense. The business data isn't any more complicated than the scenario in the question so I'll keep you posted if it makes any difference.

Steve Sharpe
Author

Ad Libitom, I added the business data and everything balanced as expected. Thank you for your help.