General

[#1]

Hi all, I'm using Accountright Premier.  Though I use it for my main business I have just set up a company file for a local community organisation for which I am volunteer treasurer.  I have invoiced community members a particular amount and within that invoice have allocated a breakdown of $ to different income accounts.

My question is why do the income accounts show a curren watches online balance of the total of all invoices when payments haven't been received yet?  It is obviously something to do with accrual not cash?  I would prefer if it only showed balance amounts when the payments have been received i.e. cash reporting.  I know I can run a P&L (Cash) report which will separate it from accrual, but don't understand why it applies the amounts to income when monies not received yet?

Hope that makes sense and look forward to advice.

[#2]

Hi all, I'm using Accountright Premier.  Though I use it for my main business I have just set up a company file for a local community organisation for which I am volunteer treasurer.  I have invoiced community members a particular amount and within that invoice have allocated a breakdown of $ to different income accounts.

My question is why do the income accounts show a curren watches online balance of the total of all invoices when payments haven't been received yet?  It is obviously something to do with accrual not cash?  I would prefer if it only showed balance amounts when the payments have been received i.e. cash reporting.  I know I can run a P&L (Cash) report which will separate it from accrual, but don't understand why it applies the amounts to income when monies not received yet?

Hope that makes sense and look forward to advice.

[#3 · Accepted solution]

Hi

As soon as you create either a sale or a purchase you are using accrual accounting.  MYOB will report on a cash basis for GST purposes but if you are going to issue an invoice MYOB will allocate the income from that invoice to the income accounts.

Regards

Clive Williams