Setting Cash vs Accrual Method

Alex Aycinena alex.aycinena at gmail.com
Mon Feb 17 23:58:49 EST 2014


---------- Forwarded message ----------
> From: Brenda Reed <brendareed123 at gmail.com>
> To: Fast Radio <fastradio at yahoo.com>
> Cc: "gnucash-user at gnucash.org" <gnucash-user at gnucash.org>
> Date: Sat, 15 Feb 2014 20:01:29 -0800
> Subject: Re: Setting Cash vs Accrual Method
> Yes, I think you are right, there is no built in choice. Unposting unpaid
> invoices seems the only choice. Do you also change the invoice date to the
> 1st day of the following year after 1/1, then re-post it?
>
> On Thu, Feb 13, 2014 at 11:17 AM, Fast Radio <fastradio at yahoo.com> wrote:
>
> > My exepreienc eis that no choice is offered.  I had to set up my business
> > as accural.  Not a bid deal because at year end all I have to do is
> > "unpost" outstanding unpaid invoices.
> >
> >
> >
> >   On Thursday, February 13, 2014 9:10 AM, Brenda Reed <
> > brendareed123 at gmail.com> wrote:
> >  Where would one set the accounting method for reporting cash or accrual?
> > I
> > just cruised through the manual and could not find it. Also, is there a
> way
> > to do a keyword search on the whole manual and guide?
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A simpler method to consider is to make what is called a 'reversing entry'.
At the end of one period, you make an entry that 'backs out' the accrual
effects in aggregate (e.g., Dr. Sales, Cr. Receivables, etc.) to convert
the totals to cash basis on the P&L and B/S. On the first day of the
following period, you make an entry that 'reverses' the first one. A lot
less effort than mucking about with individual invoices.

Alex


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