@john-pero wrote:
The mere existence of invoicing violates the sanctity of pure cash basis so a deposit therefore must be on a sales receipt as other income. The future invoice can be reduced by a negative deposit income line item.
QBO is designed to run either cash-basis or accrual basis reports, with a toggle to switch between the two. But that only works if you keep the books on the accrual basis. And if you use a SR for a prepayment, then you cannot toggle between cash and accrual P&L, as both will include the SR as income. The only way to record a prepayment and be able toggle between cash and accrual is to use a Receive Payment type transaction to record the prepayment. On a cash basis P&L it will correctly show as income, called "Unapplied Cash Payment", (because the computer does not know what account to use). It correctly will not show on an accrual-basis P&L.
If you use a SR to record a prepayment, it WILL show on an accrual-basis P&L, which is wrong.
