Remove artificial P&L restriction on expense and revenue accounts per product, allow balance sheet accounts (helps with complex payment terms)
There are times when it would very useful to have an AR or AP invoice post a line to a balance sheet account. Xero is perfectly happy to do this. The restriction is due to Dear validating that revenue and expense accounts are P&L accounts. I can't think of any reason for this validation. After all, there is already no way of stopping someone choose the wrong revenue or expense account, so why block balance sheet accounts?
Dummy items are a way to handle complex payment terms, using a intermediate invoices for intermediate payments, and then crediting the dummy item (negative quantity) on the final invoice. This is not a bad solution, but we really should show the intermediate payments on the balance sheet if we are not allowed to recognise the expense (or revenue) until the point of completion.
Yes, a manual journal can be added, but it would be nice to simply book the line on the invoice directly to the desired balance sheet account, and I can not think why this is blocked. This is why I call it artificial.
The restriction is inconsistent. When doing a receive money or spend money from 'Financials', a balance sheet account can be entered.
Unfortunately, there is no way that I can see to refund a Spend or Receive money, for instance to turn it into a credit.
(Service Purchases and Sales don't have a mechanism for deposits)