Cash Basis

If no information for check number, check date, or check amount applied exists for your transaction, either the transactions has not yet been paid or the Update Cash Basis Bills process (Projects\Process\Billing) has not been executed.  The Update Cash Basis Bills process uses the VEND_CHK_VCHR table to determine if the transaction has been paid.  If a check number and check amount are not found (indicating that this transaction has not been paid), the system will not populate this subtask.   

The total in the Check Amount Applied field is inserted in to the Cash Basis Amount field in the Billing Detail tab.  The Calculate Bills process (Projects\Process\Billing) uses the amount in the Cash Basis Amount field in the calculation of the billings.  This only occurs for projects that have been set up as cash basis projects in the Project Billing Information screen (Projects\Maintain\Billing). A project is considered a cash basis project if the Bill Costs Incurred on a Cash Basis checkbox has been selected in the Controls tab of the Project Billing Information screen.

A project should be billed on a cash basis when you are billing using Government Form 1443 and have been classified as a large business or anytime you are required to pay for goods and services before billing your customers.  If the cash basis method is selected, only Accounts Payable transactions that have been paid for will be included on the invoice.  Transactions from other modules are not considered for cash basis purposes.  

This non-editable field displays the A/P voucher number related to the transaction.

This non-editable field displays the A/P invoice number related to the transaction.

This field displays the check number used to pay the A/P voucher and is populated by the Update Cash Basis Bills process (Projects\Process\Billing).

This field displays the date of the check used to pay the A/P voucher and is populated by the Update Cash Basis Bills process (Projects\Process\Billing).

This field displays the amount of the check used to pay the A/P voucher and is populated by the Update Cash Basis Bills process (Projects\Process\Billing). This field is required and can be edited. The amount must be greater than zero. This amount is transferred to the Cash Basis Amount field in the Billing Detail subtask in the Open Billing Detail screen (Projects\Maintain\Billing) and is subtracted from the Transaction Amount as another component in determining the Amount to Bill field.

If you need to make a correction to a project and/or an account on a voucher that has already been posted, you must use a correcting voucher. Because the cash basis feature includes only A/P vouchers, you cannot use journal entries to make corrections. This correcting voucher will have entries reversing the original transactions and entries with the correct transactions. With both positive and negative amounts, the voucher will have a zero balance. When you print checks, include the zero balance vouchers, which will be paid with "dummy" check numbers. After accepting the checks, execute the Update Cash Basis Bills screen. This will ensure that the original transactions and the correct transactions will be updated with the additional check information.

Note: There can be more than one check applied to a transaction due to partial payments. Once a voucher is fully paid, the cash basis status will not automatically change back to open if the check is voided. To ensure the voucher does not get included on a bill, add the voided check amount to the amount on hold. When a new check has been issued, remove the check amount from the amount on hold to allow the amount to be billed.