Forum Message

Items appearing twice in reports

Checking on reports invoices are appearing twice, once at cost goods sold and again as accounts payable, does this mean the two items are calculated twice in the accounting period.Have tried to delete but sill appearing.Perhaps Im missing something!


Posted by Ann on May 10, 2010 7:38 PM BST

Hi Ann,

I can see why this is confusing, but it is correct. When you buy goods on credit, Solar Accounts simultaneously increases the expense account (to keep track of how much is spent on that type of expense) and the Accounts Payable account (to keep track of how much is owed to suppliers).

For more details on double-entry accounting, see this page:
http://www.quickmba.com/accounting/fin/double-entry/

Cheers,


Posted by Mark McLaren (Solar Accounts) on May 11, 2010 9:37 AM BST