Confused on Creditors/Debtors Control Accounts in Balance Sheet report

[Nick_Ryan]

Hello,

I have checked that we are correctly using QuickFile for suppliers and clients as per the infographic in this post: What is the Debtors Control Account for?

For example, I see the correct journal entries in the Debtor Control Account for client invoices and payments.

I also understand the definition of these two accounts:

• 1100 Debtors Control Account => “System account used to track debt owed by clients.”
• 2100 Creditors Control Account => “System account used to track debt owed to suppliers.”

I have also read and understood the help topic on the Balance Sheet report here: Balance Sheet Report

which states in particular

• Current Assets “include things like … debtor control accounts (i.e. value of issued invoices)…”
• Current Liabilities “include things like … creditor control accounts (i.e. unpaid supplier invoices)…”

What I don’t understand is that when I produce a Balance Sheet report I get:

• Current Assets includes 2100 Creditors Control Account as a positive value.
• Current Liabilities include 1100 Debtors Control Account as a negative value.

as follows:

If for example “1100 Debtors Control Account” is currently negative, that should mean that we are owed money by clients. So shouldn’t that appear as a positive value in the Current Assets section instead of a negative value in the Current Liabilities section?

I hope the above question makes sense.

I am sure I am missing something basic which someone can clarify.

[ian_roberts]

If creditors control is showing as an asset then that means you have pre-payments or credit notes on account with one or more suppliers that have not yet been allocated to a purchase. And similarly if debtors control is showing as a liability then that means you have received payment in advance from one or more of your customers (or issued them with a credit note against a prior invoice) which has not yet been allocated to an invoice (or had not been at the date for which you have generated the balance sheet).

[cbstephensaca]

1100 Debtors Control account would usually be positive - a debit balance - meaning you are owed money. If it is negative - a credit balance - and appearing in the liabilities section, they you owe them money. As @ian_roberts says this can be either due to payments in advance or credit notes.

2100 Creditors Control is the other way around, i.e. should usually be a credit balance meaning you owe suppliers. A debit balance would mean they we you, and it would appear in the assets section.

In the balance sheet they are both shown as “positive” numbers by convention, but will move sections depending on whether you are owed money (assets) or you owe it (liabilities).