Cash Basis Report Options

[Mike or Penny Novack]

Does GnuCash offer cash basis and accrual basis options for its reports?
> Sure -- provided you don't use any of the invoicing features.
> If you invoice then by definition it's an accrual.
More or less, but I was trying to be more specific. NORMALLY an entity 
that sends out invoices (and wants the reports like how many still 
unpaid, etc.) would be using the accrual method. They are sending out 
invoices or statements for amounts legally due them. But I was pointing 
out that this is not the case for all entities. There are entities for 
whom sending out invoices or statements represents amounts they would 
like the invoice recipients to pay but there is no legal obligation for 
them to do so. Besides personal use I use gnucash to keep the books of 
non-profits and there the situation is often like that.

An invoice sent in response to a "pledge" does represent a collectable 
amount but an invoice sent for "membership renewal" does not (there is 
no obligation to continue as a member/donor of the organization).  Such 
organizations might be keeping their books on the accrual basis but 
most, especially small ones usually on the cash basis. Calls for 
"adjustments" when the typical computerized bookkeeping system is used 
and that is (in my experience) NOT just with gnucash. Note especially 
that they are likely to be invoicing BOTH for pledges and for 
non-binding amounts and that in most cases the recipients would prefer a 
unified statement. So adjustments are going to be necessary whether the 
books are kept cash or accrual.

Michael