Customer summary reporting

I would like to address regarding Customer summary reporting which is showing accrual basis only but i required accruals and cash basis both option to select one of them for my reporting requirements by management.
Is there any planning to update?



The Customer Summary is on neither accrual nor cash basis, as those terms are generally used. It is a summary of transactions posted to subsidiary ledgers (the Customers) of Accounts receivable. As such, it must include all transactions. Nothing else would make sense.

What information is your management really looking for that isn’t on the report?

Hi Tut,
Basically management is requesting me to get cash basis Accounts receivable also.

Accounts Receivables on a cash basis would have a balance of zero

The Sales Invoices would not be recorded until tfe cash receipt from the customer was received

That is a ridiculous request from management and makes no sense.


As @Joe91 explains this is an oxymoron. I think you should educate your management about what the difference between cash-basis and accrual accounting is. Refer them to Cash Basis Accounting: Definition, Example, Vs. Accrual

Also explain what Accounts receivable means for example What Accounts Receivable (AR) Are and How Businesses Use Them, with Examples which states:

Accounts receivable (AR) are the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivable are listed on the balance sheet as a current asset. Any amount of money owed by customers for purchases made on credit is AR.

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