What is the effect of net Debit/Credit balances for reporting?

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Now we are discussing advanced entries in masters, so far we have learned enabling,disabling ‘Group behaves like a Sub-Ledger ‘ and found its effects . Here we are learning net Debit/Credit Balances for reporting options in advance group creation mode.

First Step

Enable ‘Allow Advanced Entries in Masters’. If you don’t know how to do this, go here

Second Step

Now let’s edit ‘Sundry Debtors’ to enable ‘Nett Debit/Credit Balances for Reporting’

Now Accounts info>>Group>>Alter

enable nett debit/creit balance

Type yes for the question Nett Debit/Credit Balances for Reporting, save the screen

To explain the effect let’s take a scenario

Assume that you have three sundry debtors and a total outstanding balance is Rs 39000.00 the list is below

Name Amount Dr/Cr
Star 10000 Dr
Aqua 36000 Dr
Victory 7000 Cr
Total Balance 39000 Dr

46000 is Debit balance and one debtor has Credit balance Rs 7000.00 So total debtors as per books of account is 46000-7000=39000

If you set yes to net Debit/Credit Balances for reporting the report shows only net balance,Which means that The ledger which are in  credit balance automatically deduct  from Total debit balance  and show net figure of the group

effect of net cebit credit balance

If you set No to “net Debit/Credit Balances for reporting” the report will be like this.The total of debit balance , total of credit balance show separately.

effect of disablig net debit credit balance

Here Total debit balance is 46000 and credit balance is 7000 so the net balance is 46000-7000 =39000 the result and effect   is same.

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