Report Deferred Revenue and Expense Issue / Challenges

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Report Deferred Revenue and Expense Issue / Challenges

Case Scenario #

Stage 1 = Purchase

  1. Purchase invoice # 669 is created and posted on 31-07-2023.
  2. Item selected in the invoice is “Marketing And Sales Expenses - Digital Marketing” and the default expense account mapped in the item master is “Marketing And Sales Expenses - Digital Marketing”.
  3. For the purchase item, enable deferred expense is ticked
  4. Appropriate deferred expenses account is mapped
  5. Service Start Date = 16-07-2023
  6. Service End Date = 16-07-2024

Accounting Entry #

Prepaid Expenses A/c Dr 17400
IGST - Input Credit A/c Dr 3132

To Sundry Creditors A/c Cr 20532

Stage 2 = Payment Entry

Payment is made on the same day of invoice creation - that is 31st July 2023

Accounting Entry #

Sundry Creditors A/c Dr 20532
To Bank A/c Cr 20532

Stage 3 = Debit Note Issued - Debit Note Number 890.

Debit note is issued on the same day of payment - that is 31st July 2023

Accounting Entry #

Sundry Creditors A/c Dr 20532
Marketing And Sales Expenses - Digital Marketing A/c Cr 17400
IGST - Input Credit A/c Cr 3132

ERPNext: v14.58.1 (HEAD)

Frappe Framework: v14.62.1 (HEAD)

India Compliance: v14.23.0 (HEAD)

Document Type = Report Deferred Revenue and Expense

Report Options #

Company Name 	= 	Company Name
Filter Based 	=	Fiscal Year
Start Year 	=	01-04-2023
End Year	=	31-12-2023
Periodicity	=	Monthly
Invoice Type	=	Expense

Show with upcoming revenue / expense = ticked

My Questions #

  1. At the time of purchase invoice, the a/c getting debited is “Prepaid Expenses A/c” but when the debit note is issued, the credit goes to “Marketing and Sales Expenses - Digital Marketing” - how is it working out?

  2. In the Document Type = Report Deferred Revenue and Expense, the document 669 (invoice) is not appearing but document 890 is appearing in negative. Both 669 (in positive) & 890 (in negative) should come - making it net zero else both should not come. How come only the debit note / return document is appearing?