Enable Cash Basis Reporting

Enable cash-basis reporting to specify that revenue is not earned until cash is received, and expenses are not incurred until cash is disbursed. You can enable cash-basis reporting at the start of any month. You must map cash-basis accounts to your accrual accounts and enter your balances at that point.

After you enable cash-basis reporting, Vantagepoint maintains cash-basis detail from that point forward. For this reason, it is important to enable cash-basis reporting only when you are ready to use the feature fully and you have determined your cut-off date.

After you enable this feature, it is enabled in all past and future periods. You must turn the feature off to make entries in a prior period. To avoid this, you can close all prior periods and set up security to not allow for processing in closed periods.

You must set up (map) a cash-basis account for any accrual-basis account that you want to post to a different account for cash-basis reporting. You can use existing account or set up accounts to use as cash-basis accounts.

Vantagepoint implements accrual-basis accounting by default. Under accrual-basis accounting, revenue is recognized when it is earned, and expenses are recorded when they are incurred rather than paid.

To set up cash basis reporting:

1. In the Navigation pane, select Settings > General Ledger > Options.
2. On the Options form, set Cash Basis Reporting to Yes to enable printing your accounting reports with the cash-basis accounting method.
3. Click Save.