openerp-expert-accounting team mailing list archive

["Borja López Soilán (Pexego)" <borjals@xxxxxxxxx>]

David Mitchell wrote:
> OpenERP appears to be built with the “contra-accounting” approach. So 
> the rule is to reverse transactions (e.g. an invoice) you have to 
> create a “Credit Memo”. The default behavior for transaction reversal 
> is to disallow negative transactions - obviously with the code you 
> identified below.
>
> In many countries negative transaction lines are looked upon 
> unfavorably by auditors and the expectation is that transactions are 
> reversed using contra accounting. Based on our knowledge these 
> countries include (but are not limited to): United Kingdom, and the 
> United States, etc. <--I believe Spain falls here as well - but you 
> would know better than us on this one.

Great reply, David, I'm impressed :)

It's good to know that the concepts I expressed have proper names: 
"contra-accounting" and "storno-accounting".

On Spain the recommended method (AFAIK; I'm a developer, not an 
accountant) would be "contra-accounting", at least it is the one used on 
the accounting books I have seen.
But (it seems) nothing prevents using the "storno" accounting, and some 
accountants are used to it, at least for some operations (they would use 
storno for undoing/fixing an accounting entry, but would use contra if a 
credit note needs to be issued to the customer).

So Spain would be in the gray zone.

> Personally, I’d like to see the system stabilized using 
> contra-accounting first (and run really really well) – and then if 
> there is demand – have the system support storno accounting leveraging 
> the work already done – if there is any.

Contra-accounting is more formal, and (as Nhomar says) seems to be 
allowed anywhere, so it is a good default. But I don't think it would be 
so hard to support both options on OpenERP*.

* Maybe is just enough to disable that constraint, add the storno option 
to the journals and the invoice refund wizard, and review the accounting 
reports to make sure they display the negative values properly.


Thanks for your reply!

--
Borja López Soilán
borjals@xxxxxxxxx

Pexego Sistemas Informáticos S.L.
Avenida de Magoi 66 - 27002 Lugo (España)
Tel./Fax 982801517
http://www.pexego.es 


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