That's my understanding of accrual accounting. The GnuCash Tutorial and Concepts Guide, Part III, Business Features explains how it works, includes a tutorial. Discussed in a recent thread: https://lists.gnucash.org/pipermail/gnucash-user/2021-June/096943.html continuing https://lists.gnucash.org/pipermail/gnucash-user/2021-July/097074.html