Re: [GNC] How can I book Sales when invoice is paid vs when posted?
On 3/4/24 11:34 PM, Blake Hannaford wrote: 1) At end of year, figure out the total dollar amount of unpaid invoices. Check the Receivables Aging Report. This should give you the total you want. 2) Create a new Income account "unpaid sales" 3) Debit sales by the unpaid total and credit "unpaid sales" > 4) Ideally see if "unpaid sales" can be omitted from the income statement report. 5) Otherwise, manually subtract "unpaid sales" from Total income to get income tax liability You can select which accounts appear in a report via the Accounts tab under Options. 6) At start of next year, keep "unpaid sales" but zero out all other income accounts (transfer to year-end equity - my usual system for income and expenses) No need to zero sales. Your next year's Income Statement won't take previous year's transactions into account anyway. 7) During the year, either move the total back to sales immediately or when each invoice is paid, manually debit "unpaid sales" and credit "sales" for that amount. You can alternatively not post bills until you receive payment, or post them as normal so they'll show up on a Customer Report, but then unpost, repost with new date and apply payment when it arrives. Regards, Adrien ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] How can I book Sales when invoice is paid vs when posted?
I'm not going to comment on "does that sound right?" The accounts used and workflow to temporarily convert accrual to cash are an accounting matter, not a gnucash matter. As for there not being a "setting", that make no sense. The difference between "cash" and "accrual" is LOGICAL (the timing when certain financial events are considered to have happened). In other words, suppose you were keeping books on the "cash basis". You sold a customer some goods or services and sent them an invoice (maybe just typed one out). At this point, for legal purposes that amount IS a "receivable", and you could sue in court if the purchaser refused to pay (or say died -- you are asking the estate to pay). That you do not record this in the books as a "sale" until paid is besides the point. Note also that whether you can freely choose to report on the cash basis or accrual basis or be forced to use one or the other may depend on the rules for your jurisdiction. Michael D Novack On 3/5/2024 12:34 AM, Blake Hannaford wrote: Thank you all for helpful responses so far. It is too bad that accrual vs cash invoice accounting is not a setting. At any rate I usually only have a handful of outstanding invoices at a time.I propose the following: 1) At end of year, figure out the total dollar amount of unpaid invoices. 2) Create a new Income account "unpaid sales" 3) Debit sales by the unpaid total and credit "unpaid sales" 4) Ideally see if "unpaid sales" can be omitted from the income statement report. 5) Otherwise, manually subtract "unpaid sales" from Total income to get income tax liability 6) At start of next year, keep "unpaid sales" but zero out all other income accounts (transfer to year-end equity - my usual system for income and expenses) 7) During the year, either move the total back to sales immediately or when each invoice is paid, manually debit "unpaid sales" and credit "sales" for that amount. Does that sound right? BH -- There is no possibility of social justice on a dead planet except the equality of the grave. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] How can I book Sales when invoice is paid vs when posted?
Thank you all for helpful responses so far. It is too bad that accrual vs cash invoice accounting is not a setting. At any rate I usually only have a handful of outstanding invoices at a time.I propose the following: 1) At end of year, figure out the total dollar amount of unpaid invoices. 2) Create a new Income account "unpaid sales" 3) Debit sales by the unpaid total and credit "unpaid sales" 4) Ideally see if "unpaid sales" can be omitted from the income statement report. 5) Otherwise, manually subtract "unpaid sales" from Total income to get income tax liability 6) At start of next year, keep "unpaid sales" but zero out all other income accounts (transfer to year-end equity - my usual system for income and expenses) 7) During the year, either move the total back to sales immediately or when each invoice is paid, manually debit "unpaid sales" and credit "sales" for that amount. Does that sound right? BH -- Blake Hannaford -- ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] How can I book Sales when invoice is paid vs when posted?
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. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] How can I book Sales when invoice is paid vs when posted?
What you want is cash accounting and Gnucash is set up for accrual based accounting. In our jurisdiction certain businesses are permitted to use cash accounting for income tax (and there are, for some, advantages to doing so) but all businesses are required to use accrual accounting for sales tax. What I wind up doing is posting the invoices that span the year boundary to December 31 until I have filed the sales tax return, and then reposting them to the first of the year before generating the reports for income tax. And I do the reverse for bills received but not paid by the end of the year. Sent from my iPhone > On Mar 3, 2024, at 12:43 PM, Murugan Muruganandam > wrote: > > when you are posting the invoice, select year 2 date, then your book should > reflect it on the corresponding year > > > > > Saludos Cordiales > > > Murugan > > > From: gnucash-user > on behalf of > Blake Hannaford > Sent: Sunday, March 3, 2024 12:46 PM > To: gnucash-user@gnucash.org > Subject: [GNC] How can I book Sales when invoice is paid vs when posted? > > 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! > > -- > Blake Hannaford > -- > ___ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > - > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > ___ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > - > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] How can I book Sales when invoice is paid vs when posted?
when you are posting the invoice, select year 2 date, then your book should reflect it on the corresponding year Saludos Cordiales Murugan From: gnucash-user on behalf of Blake Hannaford Sent: Sunday, March 3, 2024 12:46 PM To: gnucash-user@gnucash.org Subject: [GNC] How can I book Sales when invoice is paid vs when posted? 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! -- Blake Hannaford -- ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
