Hi. I am having some issues getting Manager to generate accurate cash basis P&L reports when accruing expenses and am hoping somebody can help me please.
I have created a liability account titled ‘Accruals’ so that I can accrue expenses via manual journal entries. When the expense is paid I create a new manual journal to reverse the accrual and enter the expense as normal via the ‘Cash Accounts’ tab or ‘Purchase Invoices’ tab. However the expense still shows up in the cash basis P&L when the accrual is made, even if no cash is involved. How can I solve this?
The cash basis P&L seems to work fine when no accruals are involved and the expense is recorded in the ‘Purchase Invoices’ tab and subsequently paid on a later date, but I just can’t get the same to work with accruals.
We need to be able to run reports on both an accruals basis and a cash basis, so I cannot enter transactions on a cash basis. I would be very grateful for any advice on how to solve this.
Thank you in advance.