It appears that on the summary, rounded values for cash basis adjustments are summed at the rounded amount, but on the trial balance they are summed at their actual value. This is not a problem, just something that I thought should be mentioned. I was trying to track down a $0.03 discrepancy, until I realized that the summary and trial balance showed slightly different net income values, and then I started running some example cash basis adjustment calculations and realized that this is what it seemed to be.
It also shows in the sum of debits and credits on the trial balance. In the specific instance I was testing, the debits and credit on the trial balance are equal when it’s set to accrual basis, but imbalanced when it’s set to cash basis.
Essentially, these come from multi line invoices, where the rounded adjustments add up in different income accounts so that the total of the rounded amounts is different than the adjustment to AR. I assume the same thing could happen with purchase invoices also.
This has always been the case for cash basis reports due to rounding. I think that a new approach for cash basis accounting is planned that will eliminate this issue in future.
Yeah, I understand why it works that way and it doesn’t usually seem to cause a problem if you know what’s going on.
It could also be convenient to have a function (separate from the cash basis setting), that creates a journal entry that converts everything to cash basis - but allows the accountant to edit it before publishing, that way no matter where you go in the books it’s converted to cash basis as–of the journal data; I know it would be somewhat redundant, but might be a little more stable in some more complex cash basis adjustment situations, what do you think?
I prefer it to be automated.