How to assign Cost Centre to Debtors?

Hi,
I am trying to make my first Payment entry (version 9.2.16).
ERPNext tells me I need to assign a Cost Centre to Debtors in order to submit the payment.
I have done an extensive search but I cannot find out how to do this.
Any advice?
Kind regards
Mike Logan

Hi,
Could you please write the full error message or even better add some screenshot?

1 Like

Thanks for replying,
So here you see below the draft form for receiving a payment for an invoice.
You can see from the date that it is backdated.
This is because we have been setting up and understanding the ERPNext system of Sales orders, Invoices, Delivery Notes and so on. So now we are up to receiving payments.

When we hit submit we get the following error message…

However, if you look at our default Company setup as below…

…you can see that Product Sales has been set up as the Default Cost Centre.

If you look at the Chart of Cost Centres there is nothing to be seen regarding Product Sales…

Any help on this would be gratefully received.
Regards
Mike Logan

Hello

Can you confirm what category your account ¨Debtors¨ was created as in your chart of accounts? Is it an expense account or a current asset ?

Regards

Hi,
I think you should try to create Product Sales Cost centre in the Chart of Cost Centres or change Company settings set Main-MMed as Default Cost Center

Thanks for replying Olamide.
As you can see in the chart of accounts jpeg Debtors sits under Income\Current Assets\Accounts Receivable

Dear Natalia,
Thanks, I will try that.
Should Product Sales Cost Centre have a parent?
regards
Mike Logan

I think yes, it should be in the same directory as Main-MMed

OK, I will try that.
regards
Mike Logan

Dear Natalia,
I have tried both.
I set up Product Sales as the default cost centre (still got the same error), and also tried Main as the Default Cost Centre. Neither worked.

I am wondering if a reboot of our system (on AWS) may help.
It seems like we are doing all the right things.
Regards
Mike Logan

Dear Mike,
Could you please also check the Debtors-MMed settings and Sales Invoice Account settings and Payment Entry Account settings as shown on the screenshots.
Regards
Natalia Myshuk

Dear Natalia,
There is a difference in the Sales Invoice setting.
At the moment "is opening entry " is set to “no”. But it is the first invoice to be paid into the system so I suppose it should be set to “yes”.
The second difference is in the debtors setup form which I have pasted below.
You can see that the root type is “income”, not “asset”, and the report type is “profit and loss”, not “balance sheet” as on your form.
Thanks
Mike Logan

Dear Mike,
I don’t know why your Debtors was created in Income category, as I’ve checked in the code it should be in the Asset category with Report Type - Balance Sheet, as I have.
So, sorry I don’t know what to do.
I think you should move Debtors account to the Asset group but if you have other transactions I don’t think it’s a good idea.
Sorry.

Dear Natalia,
I am very grateful for your assistance.
I have not made any financial transactions on the system yet, just made invoices, sales orders etc.
So I will try your suggestion.
I will also compare our chart of accounts versus a standard Australian Chart of Accounts to see if there are any other glaring errors.
I can only suggest someone at the start of our exploration of ERPNext played with the system and put the Debtors account in the wrong group.

One question:-
There is a difference in the Sales Invoice setting.
At the moment "is opening entry " is set to “no”. But it is the first invoice to be paid into the system so should it be set to “yes”?

Many thanks for your assistance.
Kind regards
Mike Logan

Dear Natalia,
Looking at the Chart of Accounts you can see that Debtors is sitting under
Application of Funds (Assets)\Income\Current Assets\Accounts Receivable\Debtors

Where exactly should Debtors be sitting in a correct Chart of Accounts?
Thanks for your help.
Kind regards
Mike Logan

Dear Mike,

Yes, I think it makes a sense to check Australian Chart of Accounts with chart of accounts in your ERPNext. As, I’ve seen the code it should use standard Chart of Accounts for Australian and in the standard it has other way then you have.

In my system it in the Application of Funds (Assets)\Current Assets\Accounts Receivable\Debtors

And I don’t know about “is opening entry”. I checked it still “no” even Invoice is paid.

.

Btw, I think you can try to create one more test Company in the your system and check if their Chart of Accounts the same.
Regards,
Natalia Myshuk

Hi Mike

Like I told you from the start your debtors is wrongly classified.

Not just your debtors but all your Current Assets. They cannot be under Income

Income is a P&L item while Debtors are Balance Sheet items.

I think your entire Chart of Accounts is structured wrongly

That’s the source of the problems you are facing

Thankyou Natalia,
I will try a test company and see what happens.
regards
Mike Logan

Thankyou Olamide,
I will setup a test company and see what happens with the Chart of Accounts.
Your help is greatly appreciated.
Kind regards
Mike Logan

Dear Olamide and Natalia,
I setup a test company.
The Chart of Accounts is correct as you described.
I will investigate how we can fix this problem.
Thankyou both for your input and help.
Kind regards
Mike Logan