How to process accurals and ensure they do not impact cash basis reports

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[Deleted User]
[Deleted User] Posts: 0 ✭
edited January 2020 in Accounts Hosted
I am accustomed to processing accruals (estimated expenses for which invoices are yet to be received etc) via general journal. The software I used to use had different types of journals, specifically "Accural Only" OR "Cash and Accrual" Journals.
If I process a journal in Reckon it appears to be treated as both cash and accrual and therefore will be picked up on a cash basis report such as a cash P & L. Wondering if there is another way to process accruals which I may be missing OR a way to mark journals as "accrual only"

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  • gazza73
    gazza73 Accredited Partner Posts: 803 Accredited Partner Accredited Partner
    edited February 2017
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    A Tax agent will be best to consider this.  Would a gst-fre journal in/out of suspense on the two dates that you want the accrual to affect,  leave your P&L the way desired, and avoid the impact of BAS matters?   IE: for purely internal management cost/accounting purposes, accruals to align the margins to appropriate months are an internal P&L matter.     Just food for thought,  not my focus nor speciality.


    Gary Pope

    An Accredited Partner- Consultant  (VIC. Aust)
    http://www.alchester.com.au/reckon-accounts-clarified/
    "Working with Accountants/Bookkeepers PPs/APs, as an
          independent IT Professional     and retired FCPA Accountant"

  • Charley
    Charley Member Posts: 542 ✭✭✭
    edited January 2020
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    Hi Jayne, if you process a journal (debit 'Expense' credit 'Accrued Expenses' without (even with??) using a supplier then it will always be seen as Cash, you also will not have included GST.

    However I think your best bet will be to use the 'Enter Bill' process and then go back and edit them when the invoice comes in, but don't forget unless you override it GST will probably be included; and put "ACCRUAL ONLY" in the Ref. No.

    However if you are on Accrual for GST then this would probably not be a good idea

    If you are on accruals for GST then you could create a new Tax Code (No-Tax) that is not picked up in the BAS and again then edit when the invoice comes in and change the No-Tax to the correct code

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