fix: prevent negative amounts in common party JE on return invoices (#55034)

Co-authored-by: Claude Sonnet 4.6 <noreply@anthropic.com>

erpnext/accounts/doctype/purchase_invoice/test_purchase_invoice.py

@@ -2962,6 +2962,52 @@ class TestPurchaseInvoice(ERPNextTestSuite, StockTestMixin):
 		pr = make_purchase_receipt_from_pi(pi.name)
 		self.assertFalse(pr.items)
 
+	@ERPNextTestSuite.change_settings("Accounts Settings", {"enable_common_party_accounting": True})
+	def test_purchase_invoice_return_common_party_je_has_no_negative_amounts(self):
+		from erpnext.accounts.doctype.opening_invoice_creation_tool.test_opening_invoice_creation_tool import (
+			make_customer,
+		)
+		from erpnext.accounts.doctype.party_link.party_link import create_party_link
+		from erpnext.controllers.sales_and_purchase_return import make_return_doc
+
+		customer = make_customer(customer="_Test Common Party Return PI")
+		supplier = create_supplier(supplier_name="_Test Common Party Return PI").name
+		# Supplier must be secondary so get_common_party_link finds it via the PI's party_type
+		party_link = create_party_link("Customer", customer, supplier)
+
+		pi = make_purchase_invoice(supplier=supplier, parent_cost_center="_Test Cost Center - _TC")
+
+		return_pi = make_return_doc(pi.doctype, pi.name)
+		return_pi.submit()
+
+		# JE for the return should credit the supplier (secondary/reconciliation) account
+		# and debit the customer (primary) account — all positive amounts
+		jv_accounts = frappe.get_all(
+			"Journal Entry Account",
+			filters={"reference_type": return_pi.doctype, "reference_name": return_pi.name, "docstatus": 1},
+			fields=["debit_in_account_currency", "credit_in_account_currency", "account"],
+		)
+
+		self.assertTrue(jv_accounts, "Expected a Journal Entry for the return invoice")
+		for row in jv_accounts:
+			self.assertGreaterEqual(
+				row.debit_in_account_currency,
+				0,
+				f"Negative debit on account {row.account}",
+			)
+			self.assertGreaterEqual(
+				row.credit_in_account_currency,
+				0,
+				f"Negative credit on account {row.account}",
+			)
+
+		# Supplier (secondary) account must be credited, not debited
+		supplier_row = next(r for r in jv_accounts if r.account == pi.credit_to)
+		self.assertGreater(supplier_row.credit_in_account_currency, 0)
+		self.assertEqual(supplier_row.debit_in_account_currency, 0)
+
+		party_link.delete()
+
 
 def set_advance_flag(company, flag, default_account):
 	frappe.db.set_value(

erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py

@@ -3319,6 +3319,52 @@ class TestSalesInvoice(ERPNextTestSuite):
 		party_link.delete()
 		frappe.db.set_single_value("Accounts Settings", "enable_common_party_accounting", 0)
 
+	@ERPNextTestSuite.change_settings("Accounts Settings", {"enable_common_party_accounting": True})
+	def test_sales_invoice_return_common_party_je_has_no_negative_amounts(self):
+		from erpnext.accounts.doctype.opening_invoice_creation_tool.test_opening_invoice_creation_tool import (
+			make_customer,
+		)
+		from erpnext.accounts.doctype.party_link.party_link import create_party_link
+		from erpnext.buying.doctype.supplier.test_supplier import create_supplier
+		from erpnext.controllers.sales_and_purchase_return import make_return_doc
+
+		customer = make_customer(customer="_Test Common Party Return SI")
+		supplier = create_supplier(supplier_name="_Test Common Party Return SI").name
+		party_link = create_party_link("Supplier", supplier, customer)
+
+		si = create_sales_invoice(customer=customer, parent_cost_center="_Test Cost Center - _TC")
+
+		return_si = make_return_doc(si.doctype, si.name)
+		return_si.submit()
+
+		# JE for the return should credit the supplier (primary/advance) account
+		# and debit the customer (secondary/reconciliation) account — all positive amounts
+		jv_accounts = frappe.get_all(
+			"Journal Entry Account",
+			filters={"reference_type": return_si.doctype, "reference_name": return_si.name, "docstatus": 1},
+			fields=["debit_in_account_currency", "credit_in_account_currency", "account"],
+		)
+
+		self.assertTrue(jv_accounts, "Expected a Journal Entry for the return invoice")
+		for row in jv_accounts:
+			self.assertGreaterEqual(
+				row.debit_in_account_currency,
+				0,
+				f"Negative debit on account {row.account}",
+			)
+			self.assertGreaterEqual(
+				row.credit_in_account_currency,
+				0,
+				f"Negative credit on account {row.account}",
+			)
+
+		# Customer (secondary) account must be debited, not credited
+		customer_row = next(r for r in jv_accounts if r.account == return_si.debit_to)
+		self.assertGreater(customer_row.debit_in_account_currency, 0)
+		self.assertEqual(customer_row.credit_in_account_currency, 0)
+
+		party_link.delete()
+
 	def test_payment_statuses(self):
 		from erpnext.accounts.doctype.payment_entry.test_payment_entry import get_payment_entry
 

erpnext/controllers/accounts_controller.py

@@ -2899,7 +2899,9 @@ class AccountsController(TransactionBase):
 		advance_entry.party_type = primary_party_type
 		advance_entry.party = primary_party
 		advance_entry.cost_center = self.cost_center or erpnext.get_default_cost_center(self.company)
-		advance_entry.is_advance = "Yes"
+		# For returns the direction is reversed, so this entry cannot be an advance
+		# (JE validation: Supplier advance must be debit, Customer advance must be credit)
+		advance_entry.is_advance = "No" if self.is_return else "Yes"
 
 		# Update dimensions
 		dimensions_dict = frappe._dict()
@@ -2931,35 +2933,26 @@ class AccountsController(TransactionBase):
 				)
 			)
 
-			# Convert outstanding amount from secondary to primary account currency, if needed
+			outstanding_amount = abs(self.outstanding_amount)
+			os_in_default_currency = outstanding_amount * exc_rate_secondary_to_default
+			os_in_primary_currency = outstanding_amount * exc_rate_secondary_to_primary
 
-			os_in_default_currency = self.outstanding_amount * exc_rate_secondary_to_default
+			# SI normal and PI return → reconciliation is credit; SI return and PI normal → debit
-			os_in_primary_currency = self.outstanding_amount * exc_rate_secondary_to_primary
+			reconciliation_is_credit = (self.doctype == "Sales Invoice") != bool(self.is_return)
+			_set_je_amounts(
+				reconcilation_entry, outstanding_amount, os_in_default_currency, reconciliation_is_credit
+			)
+			_set_je_amounts(
+				advance_entry, os_in_primary_currency, os_in_default_currency, not reconciliation_is_credit
+			)
 
-			if self.doctype == "Sales Invoice":
-				# Calculate credit and debit values for reconciliation and advance entries
-				reconcilation_entry.credit_in_account_currency = self.outstanding_amount
-				reconcilation_entry.credit = os_in_default_currency
-
-				advance_entry.debit_in_account_currency = os_in_primary_currency
-				advance_entry.debit = os_in_default_currency
-			else:
-				advance_entry.credit_in_account_currency = os_in_primary_currency
-				advance_entry.credit = os_in_default_currency
-
-				reconcilation_entry.debit_in_account_currency = self.outstanding_amount
-				reconcilation_entry.debit = os_in_default_currency
-
-			# Set exchange rates for entries
 			reconcilation_entry.exchange_rate = exc_rate_secondary_to_default
 			advance_entry.exchange_rate = exc_rate_primary_to_default
 		else:
-			if self.doctype == "Sales Invoice":
+			outstanding_amount = abs(self.outstanding_amount)
-				reconcilation_entry.credit_in_account_currency = self.outstanding_amount
+			reconciliation_is_credit = (self.doctype == "Sales Invoice") != bool(self.is_return)
-				advance_entry.debit_in_account_currency = self.outstanding_amount
+			_set_je_amounts(reconcilation_entry, outstanding_amount, is_credit=reconciliation_is_credit)
-			else:
+			_set_je_amounts(advance_entry, outstanding_amount, is_credit=not reconciliation_is_credit)
-				advance_entry.credit_in_account_currency = self.outstanding_amount
-				reconcilation_entry.debit_in_account_currency = self.outstanding_amount
 
 		jv.multi_currency = multi_currency
 		jv.append("accounts", reconcilation_entry)
@@ -3699,6 +3692,17 @@ def set_child_tax_template_and_map(item, child_item, parent_doc):
 	)
 
 
+def _set_je_amounts(entry, amount, default_amount=None, is_credit=True):
+	if is_credit:
+		entry.credit_in_account_currency = amount
+		if default_amount is not None:
+			entry.credit = default_amount
+	else:
+		entry.debit_in_account_currency = amount
+		if default_amount is not None:
+			entry.debit = default_amount
+
+
 def add_taxes_from_tax_template(child_item, parent_doc, db_insert=True):
 	add_taxes_from_item_tax_template = frappe.get_single_value(
 		"Accounts Settings", "add_taxes_from_item_tax_template"