.01 cent error due to Cash Basis Adjustment

I apologize if the answer to this is buried somewhere in the forums, I’ve been through quite a few topics without finding an answer.

My reporting period is the calendar year and I use cash basis. At the end of last year I had an outstanding invoice for $10,450 (out of a total invoice of $47,150, the remainder of which was paid last year) which was not paid until August of this year. As such, it was not included as sales last year, but is this year. Both my cash account and sales account are showing an additional $0.01 due to that invoice. I can drill down on it, but can’t find a reason for the one cent besides the “cash basis adjustment”. Do I have an error in my accounting somewhere? What is the solution to this? To removing that one cent?

I feel as though this could potentially be an issue come tax time if there are hundreds or thousands of unpaid invoices each adding one cent to the “cash basis adjustment”. My business doesn’t operate in a manner where that would happen, but nonetheless I could imagine it as a potential issue for others.

Please show the edit screen of the invoice in question - you can blank out any private information such as customer name, etc

Is there something in particular you are looking for? It is a large invoice. For what it’s worth all dollar amounts are $xxx.00

What is your base currency?

What edition and version of Manager?

The more information we have, the easier it is to suggest an answer - otherwise we are just stabbing in the dark

We can also enter the same info in our Manager and duplicate or not the problem

This helps to identify the problem as being with your software/hardware or with Manager

Yes, potential sources of the 1 cent. It is almost certainly a rounding difference from some calculation. That could come from tax code applications, multiple units, fractional unit prices, etc. This is all complicated by the fact that a partial payment was made last year, and probably originated there.

A more realistic scenario would be random additions and subtractions that tend to cancel one another out.

US dollar.

Most recent version.

At the time of writing it’s

I don’t have any tax codes applied in manager. Unit prices billed are always to the nearest dollar ($xxxx.00).

My theory is it is due to the partial payment last year and the remaining balance paid this year. Until payment was received the outstanding balance in the section that shows invoices was $10,450.01 for this particular invoice. When I opened the invoice it only showed $10,450.

I first noticed that additional cent around the beginning of the year.

Lol I updated yesterday morning.

unless you show the edit screens of the transactions, it is very difficult to identify and diagnose the problem

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Maybe not. But, as @Joe91 said, no one can help without seeing the Edit screens of the transactions at the very least. And perhaps we will then ask for more. Remember, no one on this forum can see any aspect of your records except what you show us. Tax codes were only one possible source of the adjustment, among a great many.

Did you by any chance change in Settings → Date & Number Format during the time you use Manager?

During the initial setup for this business, yes, but I doubt I did since then.

I apologize, I’ve been away from my computer for a couple days.

I don’t quite understand what screen shots you need. The original invoice? The individual payments for the invoice?

The Edit screens of all of those, plus the View screen of the sales invoice. Proprietary information can be obscured, but please do not obscure anything for the various line items.

Please show the screens where the 0.01 difference shows

This is a curious statement. How can your cash account show a 1 cent cash basis adjustment? Balances of cash accounts depend on only three things:

  • Starting balances
  • Receipts
  • Payments

Why do you believe anything in your cash account is related to a cash basis adjustment? Provide a screen shot of whatever causes you to think that.

Additionally, the sales invoice shows it has been Paid in Full. If it was even 1 cent over- or under-paid, that would not be the case.

Also, you did not furnish the Edit screen of the sales invoice involved. Given that all receipts applied against it were even dollar amounts, any discrepancy may be traced to the invoice rather than the receipts.

Finally, I notice that you have not set a base currency. It is possible that Manager has accumulated floating decimal rounding amounts until they added up to 1 cent. Set your base currency in the Settings tab and see if that cures the situation.

I must’ve misspoke regarding the cash account.

I set up my base currency (USD).

click on the highlighted amount $ 10,450.01 and copy the screen here

Please show all of the screen - you keep showing small portions of the screens and often the information on the rest of the screen is needed to diagnose the problem

For example, the full Summary screen shows the dates of the period being reported