Hello, I am trying to generate a cash basis profit and loss report. However, the cash basis report matches the accrual basis report exactly, which should not be so, as the company has payables and receivables. Specifically, I have confirmed that payable transactions are showing up in the cash basis P&L. These transactions were created as journal entries crediting a liability account and debiting an expense account. How do I generate a correct cash basis P&L?
Hi @Shannon_R, welcome to the forum.
The accrual/cash basis will only work for you if you use Sales Invoices and Purchase Invoices tabs because these two track whether a sales or a purchase has been realized in cash.
See the following guides for more details:
@Shannon_R, your mentioning of journal entries indicates you are probably using the program incorrectly. Journal entries are quite rare in Manager. You should read the Guides. Start with these: