Report vary between Cash basis and Accrual basis on A/c payee and A/r receivable.

morshed jahan · ‎June 01, 2020

Please let me know:

As in Cash basis Balance sheet report A/Payable of Vendor bills do not show and when any journal made against the vendor bills then in cash basis report it shows negative A/c figure of the journal amount. How to resolve it. Suppose: There is a vendor bill for $100 which does not show as payable in the Cash basis Balance sheet report by shows in the accrual basis report. And a journal given for write off the bills for $ 100. ( A/c Payable debit $100 and Other Income Credit $100 )The vendor's open balance got Zero. But in the Cash basis Balance shows -$100 payable. But in accrual basis it shows Zero balance the balance sheet report . How to resolve it?

It would be great help for me if I got the answer ASAP please.

Thanks

Charies_M · ‎June 03, 2020

I'm glad you came here, morshed jahan.

Let me shed some light on why there are variations of report between Cash basis and Accrual basis in QuickBooks Online (QBO).

When you run the Balance Sheet report using the Cash basis accounting method, the transactions appear will be those you have received cash and expenses if you have paid cash.

The Accrual basis on the other hand, recognizes revenue when it's earned, and expenses when they're billed even when they are not yet paid.

For more information about the Balance Sheet report, check out this article: What is a Balance Sheet report?

Be sure to get back to me if you have additional questions. It would be my pleasure to help. Have a good one!