The Accounting application is an accrual-based accounting application. Your firm may also track financial data on a cash basis by using the Cash-basis Reporting feature.
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In accrual-based accounting, revenue is recognized as it is earned (through invoices) and expenses are recognized as they are incurred (through accounts payable vouchers).
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In cash-basis accounting, revenue is recognized when cash is received (through cash receipts) and expenses are recognized when cash is disbursed (through accounts payable or cash disbursements).
With the Cash-basis Reporting feature, you set up and maintain a second, separate cash-basis general ledger.
You enable the Cash-basis Reporting feature on the Reporting tab of
. You then add cash-basis accounts to the Standard Chart of Accounts, enter balances for the cash-basis accounts, and map the cash-basis accounts to your accrual accounts.
Vision then posts revenue and expense transactions to both your accrual-basis General Ledger and your cash-basis General Ledger. You can generate cash-basis financial statements in parallel with accrual-basis financial statements.
Vision supports cash-basis versions of these reports:
Considerations in Setting up Cash-basis Reporting
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Cash-basis Reporting can be set up at any time. Deltek recommends that you enable Cash-basis Reporting at the beginning of a fiscal year so that you need only translate the Balance Sheet account balances from an accrual to a cash basis. Otherwise you must translate all Balance Sheet and Income Statement account balances from an accrual to a cash basis.
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Vision begins to maintain cash-basis detail from the time that you enable Cash-basis Reporting and enter account history. For this reason, it is important to enable Cash-basis Reporting only when it is time to fully use the feature and a cut-off date is determined. The cut-off date is the date that Cash-basis Reporting is enabled as well as the date on which cash-basis opening balances will be calculated.
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When you enable Cash-basis Reporting, it is turned on in all past and future periods. If you must make entries in a prior period and you do not want those entries to affect your current cash-basis account balance, you must turn off Cash-basis Reporting.
Deltek recommends that you close all prior periods and deselect the
Allow processing in closed periods option on the Accounting tab of
for all of your security roles. This ensures that your cash-basis account balances remain accurate.