Hi Dolibarr Community
I observed that when I pay vendor invoice instead to credit my bank account it dedbit it. And vice versa paying customer invoice credits it.
Should not be the opposite? It really messes up all the payments for me.
Please help to figure this out.
Best regards
Sven
Hi, you got it backwards, credit means to add money in your account and debit to take money from your account.
When you pay vendor, amount is debited(charged, removed) and when customer pays, amount is credited(added) in your account
I’m afraid that the above isn’t correct.
In double-entry accounting, debits (dr) record all of the money flowing into an account.
Credits (cr) record money that flows out of an account.
There is no simple setup for making the accounting system to work correctly.
To have the accounting system work properly, the accounting system has to be set up properly.
The chart of accounts set up correctly with Assets / Liabilities / Equity / Income / Expenses / Etc.
The various bank accounts have to be set up and correctly aligned to the chart of accounts.
Additionally, you have to set your purchases for “each” item/service to point to the Asset/Bank Account you want to pay for the item/service you purchase.
Concomitantly, you must set your sales of those item/service to point to the Income account to reflect your sales of the item/service.
I hope this helps get you moving in the right direction in you accounting process.
Frank
Hi @fcarll
Both interpretations are correct.
Given that @Svn doesn’t mention accounting @dobal’s answer is valid.
Thanks Everyone for your kind help!
Yes, I don’t mean accounting because there I manually can create the journal entry.
I am talking about the moment when the invoice payment to a vendor debits my account.
But is it not the account an asset? Then paying money from it should be credited to it, no?
Or I just have to accept the way how the program records it and debit credits and credit debits?
In this case my account will be always on -(minus) despite it is on +.
Do you guys have any link where this is explained by any chance?
Thanks again for your help!
Best regards
Sven
Hi @Svn
As simple as possible, a little bit of reading is required!
In every day language we use the banking terms as dobal explained.
So the Dolibarr “bank entries” tab represents correctly the transactions using a single entry method(so does your bank,see your actual bank account interface) where it depicts the balance of the one account from the day you opened it till now.
On the other hand double entry as the term suggests is a complex but reliable method to keep your business books in order, using different accounts that should be in absolute balance so every transaction is always recorded twice using the equation Assets=Liabilities+Equity for a fiscal year(here also Dolibarr works as expected)
Here and this is the confusing part the words debit and credit have dual meanings
A debit is an entry that increases an asset account or decreases a liability account
A credit is an entry that increases a liability account or decreases an asset account
So if your double entry setup is correct when you buy sth from your vendor for 1000 euros you should see two entries, one for your bank Accounting account as credit and another one as debit to keep the balance.
That is why in my opinion double entry accounting setup should be a job for a professional accountant.
