[GNC] Question about Profit-Loss Report

[Alan Hopkins]

   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:
   [1]https://www.accountingtools.com/articles/how-to-convert-accrual-basi
   s-to-cash-basis-accounting.html
   [2]https://www.bookstime.com/articles/accrual-to-cash-conversion
   [3]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:
   [4]https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide
   I hope that is of some help to you
   Cheers
   Alan

   On 1/6/21 12:42 am, Michael Hendry wrote:

On 31 May 2021, at 15:10, Howard M. Fried [5]<cursorsci at gmail.com> wrote:

I have several invoices that were issued in 2020 but paid in 2021. These funds a
re 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 i
nclude 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 dat
e you made a payment for expenses.

I don’t use the business features, but I think that you will be working on an ac
crual basis, and have reports on Accounts Receivable and Accounts Payable which
carry over the end of the financial year.

Michael


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References

   1. https://www.accountingtools.com/articles/how-to-convert-accrual-basis-to-cash-basis-accounting.html
   2. https://www.bookstime.com/articles/accrual-to-cash-conversion
   3. https://www.double-entry-bookkeeping.com/bookkeeping-basics/accrual-to-cash-conversion-excel-worksheet/
   4. https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide
   5. mailto:cursorsci at gmail.com
   6. mailto:gnucash-user at gnucash.org
   7. https://lists.gnucash.org/mailman/listinfo/gnucash-user
   8. https://wiki.gnucash.org/wiki/Mailing_Lists