Hi, I'm writing this to the users list, because I'm not sure what the correct behavior should be, looking for an accountant to weigh in on that.
In the past year, we've started collecting payment up front as an overpayment/prepayment, into a liability account. We keep it there until the final invoice is sent for the project, and then we apply that pre-payment to the last invoice. As best I can tell, the Accrual-based reporting all looks correct, but I'm thinking if I need to do a cash-based income statement, that prepayment should show up somewhere (and I'm thinking it would be taxable -- we're collecting the cash now and doing the invoice later -- but we need to pay tax on the cash basis). I'm testing LSMB 1.4 to see how this works, and what I'm finding is that the overpayment received does not show up anywhere on the income statement, until it's received against an invoice. As I write through this, I'm having a hard time seeing any other way to do it -- we need to apply the overpayment to an invoice to know what account to put the income into -- and when we do apply that overpayment, it will show up as cash revenue for the date the payment is applied (I'm assuming, have not verified this). Is it routine in cash reporting to not report deposits as income? If so, this should be fine for us. The biggest issue here is knowing when the overpayment was applied -- you cannot see any indication of the overpayment getting applied on the invoice itself, only on the general ledger for the overpayment account. Cheers, John Locke http://www.freelock.com ------------------------------------------------------------------------------ Rapidly troubleshoot problems before they affect your business. Most IT organizations don't have a clear picture of how application performance affects their revenue. With AppDynamics, you get 100% visibility into your Java,.NET, & PHP application. Start your 15-day FREE TRIAL of AppDynamics Pro! http://pubads.g.doubleclick.net/gampad/clk?id=84349831&iu=/4140/ostg.clktrk _______________________________________________ Ledger-smb-users mailing list Ledger-smb-users@lists.sourceforge.net https://lists.sourceforge.net/lists/listinfo/ledger-smb-users
