Cash-basis Transaction Example

Cash-basis Reporting can be illustrated with a cash receipts example.

Assume that you post a cash receipt file with payments totaling $10,996.81. On the accrual side, this transaction posts as a credit to account 111.00 - A/R - Clients. For cash-basis reporting purposes, you set up revenue account 401.00 - Billed Fee Revenue and mapped this account to account 111.00.

After you post the transaction and run the Accrual General Ledger Posting Summary, it displays these amounts:

After you post the transaction and run the Cash-Basis General Ledger Posting Summary, it displays these amounts: