Re: [SL] AR balance sheet vs trial balance vs outstanding

[Paul T. <pt...@wa...>]

Chris Johnson wrote:
> Thanks to Mark, Arthur, and Paul for responses. I haven't been able to resolve this, byt wanted to follow up to let you know what I found in following your clues. 
>
> I ended up having to fudge it for tax payments today...the accountant for last 2 yrs has actually taken our trial balance numbers and then entered those into quick books to generate the reports (since they can't make sense of what sqlledger is saying - and I can't either).
>
> Mark, your clue re receipt and invoice happening in different years definitely seemed promising. I took out my yearend entry and updated the invoices, then ran the yearends again. The AR still shows in the balance sheet (!), though slightly smaller (2005 was about half, 2006 was only slightly smaller). Seems like same experience you had - did you have any other clues about where date problems might be coming from? 
>
> Anyone else figure this out? 
>
> Paul - we actually do give our clients credit (ie generate invoice then wait for payment). Sometimes invoices do stay on the books without a payment. 
> But there is always a credit between when we make the invoice and receive the payment (most of the time we don't start working till receipt).
>
> Arthur - I agree that in either case, they shouldn't show on the balance sheet of a cash basis report (as per accounting; SQLLedger seems to be different!). 
>
> I welcome any more ideas you all have. 
>
> Thanks,
> Chris
Chris, the difference between cash based and accrual based accounting is 
the MOMENT of taking the revenue.
If you invoice a customer in december,  you could argue the sale is the 
moment you earn money, weather received or not.
That is accrual based, AR debit, revenue account credit THIS year december.

If you use cash based, this december sale should NOT show in this years 
figures, since there is no cash receipt this year.
Maybe sometime next month, so nexxt year. NOT now.  So AR debit,  future 
projects (or some other liability account) credit, both balance sheet so 
no revenue this year.

To me it seems you use a mixture of cash based accounting and accrual 
based accounting?
AR for accruals, cash customers for cash based?