The Show debit balance as Positive/Negative option is available when selecting Income Statement from the Category drop-down menu of a VCO template. The Income Statement Category allows the ability to select revenue, expense, gift, transfer, gain, and loss accounts all under a single header/total or account detail line. Accounts can be netted within the body of financial statements.

Show debit balance as Positive/Negative option

Note: If creating a VCO template with homogenous sections (revenue and expense only sections), we recommend using the revenue, expense, gift, transfer, gain or loss category types. Those specific category defaults produce results with the correct natural balance and eliminate the need to select a natural balance. However, if financial statement requires mixed account types on a given detail line, then the income statement category is the appropriate option.
 

Some Financial Statements require the combination of income statement categories in order to net balances and display a single summary total.
 

    For example: Gross revenue - returns = net sales revenue

    It may be necessary to display only the net sales revenue balance on the Income Statement, and not include the calculations required to derive the net number.
     

    Selecting the category for the accounts in the VCO template automatically assigns the natural balance of that account category (e.g. revenue's natural balance is ???). When selecting Income Statement as the category, a natural balance must be defined, depending on the types of accounts to be included.
     

    The default natural balance for the Income Statement category is a credit balance (show as negative), since in most cases it is used to net revenue and expense to result in a credit balance for a group of mostly revenue accounts.
     

    However, if grouping expense accounts with a single or few revenue accounts, the expense result will be numerically correct but the sign would be incorrect. To display accounts with a natural debit balance, select to the Show debit balance as Positive option.
     

    Note: Each section that utilizes the Income Statement category must be analyzed for the appropriate sign. If the sign is incorrect, open that particular line in the VCO template and change the 'Show debit balance as' option from negative to positive, or vice-versa.