[GNC] How can I book Sales when invoice is paid vs when posted?

[Michael or Penny Novack]

On 3/3/2024 10:46 AM, Blake Hannaford wrote:
> Sometimes I send an invoice to a customer in year 1, but the payment is
> received in year 2.   Gnucash always seems to credit the Income/Sales
> account when posted, but then my income for Year 1 taxes is overstated, and
> Year 2 is understated.    I know you can select different accounts
> receivable accounts for the post but how can I not boost Sales until the
> invoice is paid?
>
> Thanks!
>
Are you keeping your books on the cash basis or the accrual basis? Are 
you asking about how to adjust (at year end) if your intent is to be on 
cash basis but gnucash does not support invoices unless accrual?

If you are keeping the books on (and filing taxes on) the accrual basis 
it is IRRELEVANT in what year the customer pays the invoice. You 
received the income for that sale when the order was fulfilled/customer 
invoiced. At that point you have a RECEIVABLE for the amount. 
Receivables might be sold to a FACTOR (at which point not longer 
relevant to YOU when the customer pays, or even if the customer pays.

If any of this is not making sense to you then you need more learning 
about "accounting for a business". And "cash bass" vs "accrual basis". 
It's basics you need help with, not gnucash (or not gnucash yet).

Michael D Novack

-- 
There is no possibility of social justice on a dead planet except the equality of the grave.