gnucash and accrual accounting
Kash
kash at warmplanetbikes.com
Wed Dec 26 14:08:56 EST 2012
This is sort of an accounting question, but relates specifically to
implementing in gnucash, so please bear with me.
I've recently started to set up bill payments and invoicing using
gnucash's built in capabilities
Business> Vendor> new bill
Business> Customer> new invoice
The effect seems to be consistent with accrual; The P&L is affected, but
not the cash flow or balance sheet. This means that I can set up
transactions in to show up in the month when they were earned, or
incurred, but pay or collect in a different month.
I've got two questions.
1.) Is it correct that I can generally use billing and invoicing for
accrual rather than setting up my own manual system of A/P accounts? Are
there any foreseeable drawbacks?
2.) How do I split payments so that they show up across several periods
in the income statement, but are actually paid and appear on the cash
flow as one payment? For example, I have a continuous service that I'd
like to appear on monthly P&L, but that is actually paid annually?
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