I recently noticed an option for a J/E to be noted as a “Cash transaction for cash flow statement purposes” (Sorry I don’t read every release note.) While I am still exploring this feature, I did a batch update to check all existing J/E’s as such. However, I now see that this feature is not available when setting up recurring J/E’s. I guess I could do a periodic batch update but I feel it would be better if the checkbox was available when initially setting up a recurring J/E. Is that, or will that, be possible. Thanks.
I cannot think of a recurring J/E that would need to be classified as a cash transaction for cash flow statement purposes.
You say you “cannot think of a recurring J/E that would need to be classified as a cash transaction for cash flow statement purposes”. Perhaps not, but maybe others can. Tell me if you find my logic below incorrect.
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The system (read “programmer”) allows a new J/E to be thusly classified. You can test this by setting up a new J/E, look for the checkbox.
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A recurring J/E is simply an actor waiting to go on stage or a twinkle in the accountant’s eye or, more correctly, an intent to process an entry on a recurring, regular, basis, but once it is processed, it is a full-fledged J/E just like any other.
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The use of recurring J/E’s is just a way to reduce work and eliminate having to remember to process the entries month after month. You know, check them off the list you keep on the back of an envelope each time they are processed.
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If the process of setting up recurring J/E’s is designed to save accountants work and improve accuracy through fewer missed transactions, then why not have the checkbox in question part of the initial setup?
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The reason why someone would want to do this is really not relevant to the question at hand, do you not agree?
@rungek please note that the logic for recurring journal entries has always been clear because that is why they exist! The issue is with:
Note at Make journal entries | Manager it states that:
In fact, no transaction involving the actual receipt or payment of funds by a business can be recorded via a journal entry.
Clone is already available throughout manager for this type of use case. It is already supported for journal entries.
Manager is designed for minimal use of journal entries. As such extensive use of journal entries suggest the program is not being used as designed, so is a rare use case by design.
My comment on recurring journal entries was only in relation to their classification as a cash transaction. From my experience, recurring journal entries have primarily been used to allocate non cash expenses each month for more reliable interim financial statements instead of entering large balance date adjustments at the end of the reporting period. I assume that is why they don’t have the option of classifying them as a cash transaction but there would be no drawbacks to enabling it in the same way as regular journal entries.