P/L report and GST

Hi sf17 

First I'll explain accrual and cash accounting methods:

Accrual accounting is based on the invoice date, so if an invoice is dated the 29 June and paid on the 2 July it is included in June reporting.

Cash accounting is based on the payment date, so the above invoice would be included in July reporting.

Applying a payment to an invoice won't affect the GST accrual report because the invoice is reported according to the invoice date. Only the GST cash report for the period in which the payment was made would be affected.

Orders will not be reported in the accrual report until they have been converted to invoices. Any payments made against those orders will be reported in the period the payment is made in the cash report only.

With regard to your first scenario, an order is a request for a product or service while an invoice means that the product or service has been provided and payment is due. This means that you should be converting orders to invoices once the product or service is provided, not when the customer pays.

I'd recommend having a chat with your accountant about whether you are reporting on an accrual or cash basis. It would also be worth checking whether you should be retaining the original order date when you convert an order to an invoice or changing the date to the actual supply date.

Please let me know if you need further help with this.

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Hi sf17 

Thanks for your post. For reports filtered for the same period to differ when run at different times you would need to enter, delete or change transactions within that date range. You'll need to reconcile the two reports to work out what has changed and if that change was correct, for example, your accountant may have posted end-of-year adjustment journals on 30/06/20.

To prevent changes from being made in a previous period you can lock a period by going to Setup>>Preferences>>Security tab and select the Lock Period.

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Hi Tracey_H 

Okay noted.

I have 2 scenarios:

Firstly, most of the time the customer don't pay full amount in that same month it can go to the next month so I have to keep the invoice in order mode.

Secondly, the stock sometimes moves out but the balance remains then I have to keep the invoice in open because the customer makes payment after few months time.

How can I create the GST accrual report showing all those invoice that is open, close or order without locking the date. From my knowlege locking the date I won't be able to edit the invoice. When I say edit that means making payment or closing the invoice.

Thanks