[GNC] Question about Profit-Loss Report

[Mahon Finbar]

All very understandable. It has always intrigued me how accountants deal 
with 'late payments' i.e. bills paid after the close of the year. If I 
understand the discussion, ongoing (accrual based) businesses are always 
behind when it comes to an analysis of the state of play, unless all 
invoices are paid within the accounting period? Is that why a cash based 
spreadsheet is needed?

Isn't it possible in GNU to 'clear' an entry when the amount is paid? 
Then it will appear in the reconciliation?

Just a question, I don't want to drag out the discussion.

On 01/06/2021 04:13, Howard M. Fried wrote:
> On 5/31/21 9:08 PM, Alan Hopkins wrote:
>> Hello Howard
>>
>> I agree with both Michaels - you need to understand the difference 
>> between
>> accounting records & reports prepared on an accruals basis vs a cash 
>> basis. You
>> should do some reading on basic accounting.
>>
>> GNUCash used for business uses the accrual basis - (invoices are 
>> registered in
>> accounts receivable, bills are registered in accounts payable). 
>> Depending on
>> the number of invoices & bills involved, you may find that you need 
>> to develop
>> your own cash report on a spreadsheet.
>>
>> Some of these links may  be of help to you:
>> https://www.accountingtools.com/articles/how-to-convert-accrual-basis-to-cash-basis-accounting.html 
>>
>> <https://www.accountingtools.com/articles/how-to-convert-accrual-basis-to-cash-basis-accounting.html> 
>>
>> https://www.bookstime.com/articles/accrual-to-cash-conversion
>> <https://www.bookstime.com/articles/accrual-to-cash-conversion>
>> https://www.double-entry-bookkeeping.com/bookkeeping-basics/accrual-to-cash-conversion-excel-worksheet/ 
>>
>> <https://www.double-entry-bookkeeping.com/bookkeeping-basics/accrual-to-cash-conversion-excel-worksheet/> 
>>
>>
>> GNUCash is excellent software (a big thank you to the developers!) 
>> and you can
>> get more understanding of basic accounting and using the business 
>> features by
>> referring to the Tutorial & Concepts guide:
>> https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide
>> <https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide>
>>
>> I hope that is of some help to you
>>
>> Cheers
>>
>> Alan
>
> Thank you Alan, and both Michaels.  I was an educator for 34 years 
> before launching a second career as an Editor.  Clearly, I need to 
> take up the role of student and learn some basic accounting methods.  
> I will certainly examine the materials that you have so kindly provided.
>
> Regards,
> Howard
>
>> On 1/6/21 12:42 am, Michael Hendry wrote:
>>>> On 31 May 2021, at 15:10, Howard M. Fried<cursorsci at gmail.com>  wrote:
>>>>
>>>> I have several invoices that were issued in 2020 but paid in 2021. 
>>>> These funds are not included in a P&L report for 2021, apparently 
>>>> because the report is based on date of invoice issue, or have I 
>>>> missed something.
>>>>
>>>> Is it possible to get the 2020 Sales that were paid in 2021 into 
>>>> the report for 2021?  Simply extending the Report date range 
>>>> backward is not a solution because many invoices that were issued 
>>>> and paid in 2020 will be included.  Or am I to include unrealized 
>>>> assets for 2020 as profit, like the P&L report does (I have no 
>>>> accounting, financial, or legal experience in such matters).
>>>>
>>>> Thank you for considering,
>>>> Howard Fried
>>> Not an accountant either, Howard, but I believe the approach varies 
>>> according to whether your books are kept on a cash or an accrual basis.
>>>
>>> If cash, then reports are based on the date when you received 
>>> income, or the date you made a payment for expenses.
>>>
>>> I don’t use the business features, but I think that you will be 
>>> working on an accrual basis, and have reports on Accounts Receivable 
>>> and Accounts Payable which carry over the end of the financial year.
>>>
>>> Michael
>>>
>>>
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