INTERNET APPLICATION DEVELOPMENT
MID MARKET ERP DEVELOPMENT
by Sheila Zhang
When working in Intacct, if a company sets its accounting method as “Accrual and Cash,” Intacct provides both accrual-based and cash-based financial reports.
To do this, Intacct needs to setup three types of journals – Accrual only, Cash only, Accrual and Cash - to maintain transactions behind the reports. These three journal types enable successful configuration of the Accounts Payable and Accounts Receivable modules.
The transactions entered by users are stored in Accrual Only journals or Accrual and Cash journals. Intacct creates the transactions in Cash Only journals automatically when users enter cash-related transactions. When transactions not related to cash or bank are created, no transaction are created in cash based journals.
For an example here, I created an AP invoice with amount $6,000.00. At this point, it only creates the accrual-based record in the journal. It did not create a record in the cash-based journal.
And then $3400 was paid on the invoice. Intacct creates the record in the Accrual and Cash based journal.
At this stage, you will see a record was created in the cash-based journal as well.
With these calculations,
Both the cash-based and accrual-based cash flow statements are generated.
If you have any questions on how to set up your accounting system in Intacct, please contact me.