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Then you get to corrective transactions, where a normal return is Sales DR 100 Bank CR 100 while an annulled sales invoice is Sales CR -100 Bank DR -
by jojobas 3y ago
Then you get to corrective transactions, where a normal return is
Sales DR 100
Bank CR 100
while an annulled sales invoice is
Sales CR -100
Bank DR -100
The point of using debit/credit vs +/- is just that, the ability to have correct account turnovers with corrections, and maybe some conventional understanding of what's an expense account in debit and what's a vendor account in credit.
- naasking 3y agoA return and an annulled sale are still credits and debits, respectively, when it comes to the mechanical sum being performed. The specific category of the action is higher-level information that doesn't need to appear at this level of the model.