Difference in Cash report and Profit and Loss Reports

When I generate reports there is a difference in the amounts allocated to some headings between the cash summary and Profit and Loss statement (Cash Basis). I found that the Automatic credit allocation amounts which paid the invoices in question (Fines and Interest) were not being shown under these headings in the cash summary report while they were allocated to these headings in the P&L statement. Is it normal?

Without seeing your full chart of accounts and all transaction details, it is difficult to tell whether what you see is correct. But it could be. It appears that other accounts also do not match. (Look at Association Services and Old Dues, for example.) The first thing is to check and verify that the P&L you think is on a cash basis actually is, rather than accrual.

Even when prepared on a cash basis, the P&L Statement is not the same thing as a Cash Summary (also called a cash flow statement). The P&L lists only the net result of transactions affecting income (or revenue) and expense accounts. The difference is profit. If there were write-offs, returns, etc., those could affect the net.

The Cash Summary lists all inflows and outflows, which can involve asset, liability, and equity accounts as well.

The second thing to do is to click on the blue figures in each report pertaining to any account you feel might be in error. Compare what contributes to one report with what contributes to another. You might want to export the listings for easier comparison. This will highlight what is different and should pretty easily let you know if there is a mistake.

I have the same issue, please help us :slight_smile:

Cash Summary is just a simple report summarizing how bank/cash transactions have been categorized for the given period. You shouldn’t use it to draw conclusion on profitability of your business or anything like that. That’s what P&L is for.

The figures on Cash Summary don’t have to match figures on cash-basis Profit & Loss Statement. There are many transactions which will affect cash-basis P&L but won’t affect cash summary. For example, a journal entry, inventory write-offs, manufacturing orders, expense claims etc. will be all affecting cash-basis P&L while have no effect on Cash Summary.

Can you please advise as to how the transaction is recorded for these in the Cash Summary?

When I click the link on the figures, I get the Transactions, but that seems to go above my head.

No transaction is recorded in the cash summary. The cash summary (or cash flow statement, to use another common name) is prepared from your records of transactions. It summarizes actual movements of funds into and out of the company. Learn more about them at Cash Flow Statement | Explanation and Examples | AccountingCoach.