I will try to elaborate a bit. AP is the TOTAL account of all individual suppliers (subaccounts/subledgers). The amount (Credit / Liability) should be equal to the total sum of entered invoices with status UNPAID. When an individual invoice is PAID, the AP sub ledger is debited (diminishing total liability) At the same time the asset Bank Account is credited, diminishing the total Bank asset.
An invoice is NOT supposed to 'stay' in the Accounts Payable total once paid! -----Original Message----- From: [EMAIL PROTECTED] [mailto:sql-ledger-users-bounce@;freelists.org] On Behalf Of Marius Kjeldahl Sent: Thursday, October 31, 2002 9:14 PM To: [EMAIL PROTECTED] Subject: [SL] Re: Tax question.. Finance wrote: > Basic accounting: > > When booking Invoice you actually tell the system: > > PhoneCosts debit > Prepaid tax debit > AP credit > > > When u PAY the invoice, you actually tell the system: > AP debit > Bank (or cash) credit. > > > Now as long as the invoice is in A/P (unpaid) it is a liability. > > Am I making this any clearer? Not really, but thanks for trying. But judging from how sql-ledger behaves and the reply from Mark, the short answer is that it is supposed to stay on the balance sheet as a liability, similar to how AP is the sum of everything paid (as far as I can see). The incoming tax has the opposite sign (negative), however. I'm pretty sure it will dawn on me in the end. For now, I guess I will just accept it until I get an indication that something is wrong. -- Mvh, Marius Kjeldahl
