When the summary is set to cash basis, it still includes certain invoices in accounts receivable; can anything be done about this? I thought that maybe it was only on credit balance accounts, but it doesn’t include all credit balance accounts and adjusts some non-credit balance accounts to have a debit balance. If there’s some accounting logic behind how exactly it does it, I would be interested to understand; however, I suspect that it is an unintended result of some cash basis adjustment programming; in which cash, it renders the cash basis setting useless.
I am on version 26.1.5.3159; I just updated from version 25.3.29.2206 and it did the same thing.
So specifically, it only seems to happen in these two cases:
When there is a credit balance - the client has paid more than they owe (sum of invoices) - and one of the payments is not assigned to a specific invoice i.e. automatically assigned, then it shows the credit balance as a credit on accounts receivable, even when it is set to cash basis; now, this I can understand, even though for my purposes I would prefer that it automatically assigned it to the nearest invoice, but I can see that that could cause problems in certain situations, and I can see good accounting logic behind handling it this way.
When there is a negative total invoice (the situation I showed screenshots of), even when the customer’s AR balance is 0; it essentially shows the payment to the customer in the AR ledger, and shows a $0.00 balance, but, when adjusting for cash basis, it does not recognize the payment to the customer, and so creates a debit adjustment (because the negative invoice is a credit) against the invoice; so then, with the payment factored in, it creates a debit balance on the summary, when the client doesn’t even have a balance; I can’t think of a reason that it would be purposefully displayed this way, I’m suspecting it’s an unintended consequence of however the program handles positive balance invoices
They’re being imported from a POS system which records everything as invoices, it does not have credit notes.
I would have preferred not to have to split-off negative value invoices for import, but that is fine if Manager.IO is not meant to handle negative value invoices. In that case though, it is a bit inconvenient that Manager always tries to link a credit note to an invoice, because some are not directly connected to a given invoice.
I would suggest, that if Manager is not meant to handle negative value invoices, then it would be preferable to have some sort of guardrails to either prevent or warn the user when an invoice is being created or updated with a negative value.
That said, it appears this is not exactly a bug like I originally thought. Thanks!
