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.
Enable ‘Allow Advanced Entries in Masters’. If you don’t know how to do this, go here
Now let’s edit ‘Sundry Debtors’ to enable ‘Nett Debit/Credit Balances for Reporting’
Now Accounts info>>Group>>Alter
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
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
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.
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.