Double income and expenses in profit and loss

CamJustCamCamJustCam Member Posts: 3

Hi
I created a set of liability accounts for my regular suppliers ... when I receive a receipt or invoice from these clients I add these to the respective account. When I make payments from my bank - I then credit the account.

I have a similar structure for my receipts - I receive money from Credit Cards, Cash, and a few payment app and barcode systems. Each of these has their own account on the system.
Each of these deposits into my account is allocated as a Transfer from the respective Credit Card, Cash etc account. And balanced by sales figures from my Point of Sale System.

The problem is that I now seem to have a duplication of both expenses and income in my Profit and Loss account. It's as if every transaction is being counted by the system twice.

Can anyone help me arrange the4se accounts appropriately so that this does not occur?

Comments

  • ConnorMConnorM Member, Administrator Posts: 193 admin

    Hey @CamJustCam! Can you send some screenshots here of what that doubled income/expense looks like in your Profit & Loss report? Do you also see duplicated transactions within you Accounting > Transactions page? Would love to dig further into this with you!

  • CamJustCamCamJustCam Member Posts: 3

    Hi
    Thanks for responding. I will upload a few screenshots - but to answer your queries I don't see duplicate transactions ... but what is happening is that it is double counting the debits and credits into my accounts for the Cash Flow report. Actually, the Profit and loss report seems to be relatively accurate. !

    Is there a way of fixing this?

    Cheers

    Cam


  • EmmaPEmmaP Administrator Posts: 270 admin

    Hey @CamJustCam! Thanks for sending those screenshots through. In your first post here you mentioned - "I created a set of liability accounts for my regular suppliers ... when I receive a receipt or invoice from these clients I add these to the respective account. When I make payments from my bank - I then credit the account". Can you walk me through the process of how you are recording an invoice payment? I'm not able to see from the reports what may be causing these numbers, but I'm interested hear about your workflow and we can go from there to figure it out!

  • CamJustCamCamJustCam Member Posts: 3

    Hi
    My process is a bit of a workaround.

    Step one - I capture all receipts and invoices on my mobile wave app (at the moment Wave only thinks of these as receipts - but I treat both as the same thing).

    For every Vendor, I created a Liability account ... and I record this as the Account from which the receipt/invoice was paid. See the screenshot of the relevant chart of accounts...

    The next screenshot shows the receipt captured to the "Village Butcher" Account as an example, With the Category correctly allocated for my Costing (in this case Cost of Sales Food).

    I then track payments from my bank account or credit card to the vendor. To do this I make the category - the Vendor liability account - see screenshot.

    This leaves me with multiple accounts from which I can track both debits and credits - allowing me to effectively reconcile each account (It would be terrific if, in fact, we could reconcile any account we wanted not the limited ones in the system).

    I hope that clarifies how I'm working. Any improvements on the chart of accounts would be greatly appreciated. I'm not sure where the best place for Vendor Accounts such as I've created is. I placed them under liabilities as that seemed reasonable. But the system seems to track the flow of cash for both internal/external transactions and inter-account transactions.

    Thanks

    Cam

  • BarsinABarsinA Administrator Posts: 511 admin

    Hey @CamJustCam

    Thanks for the feedback and the workaround for our other users to potentially use as well. Just curious, could you treat your vendors as an asset account (Cash and bank) rather than liability? Do you think that might allow you to merge both transactions? Let us know!

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