Trial Balance - Accounts Payable and Accounts Receivable

Discussion in 'Quickbooks' started by John Dann, Apr 9, 2005.

  1. John Dann

    John Dann Guest

    We need to provide a breakdown of our accounts receivable and accounts
    payable figures from the end of year trial balance to our accountant.
    We use the cash accounting system, and the accounts receivable and
    accounts payable acounts on the trial balance do not agree with the
    totals of unpaid bills and unpaid invoices when the trial balance is
    calculated on a cash basis. (But the figures do agree when the trial
    balance setting is changed to calculate on an accrual basis).

    I have double-clicked on the figures to bring up the Transactions by
    Account window, but cannot make sense of the lists. I understood that
    by using the cash accounting system, invoices or bills are only
    entered into the system when they are paid, so where do the balance
    figures come from?

    Thanks for any pointers in the right direction!

    (Using QB2005 Pro UK version)
     
    John Dann, Apr 9, 2005
    #1
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  2. John Dann

    Allan Martin Guest

    "John Dann" <> wrote in message
    news:...
    > We need to provide a breakdown of our accounts receivable and accounts
    > payable figures from the end of year trial balance to our accountant.
    > We use the cash accounting system, and the accounts receivable and
    > accounts payable acounts on the trial balance do not agree with the
    > totals of unpaid bills and unpaid invoices when the trial balance is
    > calculated on a cash basis. (But the figures do agree when the trial
    > balance setting is changed to calculate on an accrual basis).
    >
    > I have double-clicked on the figures to bring up the Transactions by
    > Account window, but cannot make sense of the lists. I understood that
    > by using the cash accounting system, invoices or bills are only
    > entered into the system when they are paid, so where do the balance
    > figures come from?
    >
    > Thanks for any pointers in the right direction!


    If you are a cash basis taxpayer then you sent the wrong reports (Accrual
    Basis) to your accountant. You should have sent a cash basis Trial Balance
    and General Ledger . Click on modify report and check "cash basis".









    >
    > (Using QB2005 Pro UK version)
     
    Allan Martin, Apr 10, 2005
    #2
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  3. John Dann

    John Dann Guest

    On Sat, 9 Apr 2005 19:28:41 -0400, "Allan Martin" <>
    wrote:

    >
    >If you are a cash basis taxpayer then you sent the wrong reports (Accrual
    >Basis) to your accountant. You should have sent a cash basis Trial Balance
    >and General Ledger . Click on modify report and check "cash basis".
    >


    It's maybe never easy to provide sufficient detail in a post with
    writing an essay, but to clarify, the acountant was indeed sent the
    correct cash basis TB.

    The problem is because he's now requested a breakdown of bills and
    invoices outstanding at the year end and more specifically (as per the
    original post) that the detailed QB breakdowns for these two
    categories do not agree with the cash basis TB figures. However, if
    the TB basis is changed to accrual then the figures do agree. It's
    like the cash basis TB totals are using the accrual basis
    bills/invoices outstanding.

    (Actually some web sources seem to suggest that there shouldn't even
    be figures for bills/invoices outstanding at year end on a cash basis
    system. I can sort of see the logic in that but I'm (very) obviously
    no accountant and QB clearly does think the figures should exist.)
     
    John Dann, Apr 10, 2005
    #3
  4. John Dann

    Neil Preston Guest

    I'm battling the same problem with a current question (See "Balance sheet
    Cash basis A/R" posted 4/6). If you do a Google search in Google Groups,
    you will find quite a few messages about the problem, with no real answers.

    The QB support site has a knowledge base article which tries to address the
    issue:
    Determining which transactions make up the A/R and A/P balances on a
    cash-basis balance sheet report
    KB ID#: 122646
    Categories: Accounts Payable, Accounts Receivable

    It identifies criteria which cause a transaction to be listed in the A/R
    register. However, in my current balance sheet I have transactions listed
    that cannot meet any of those criteria, so it makes no sense. (For example
    a transaction entered in January '04 paid within a couple of days in cash,
    and for which the sales tax liability was paid by the end of first quarter.)

    The really irritating thing is that the Balance column simply appears to be
    the sum total of the gross profit on each item listed.

    I wish we knew of someone at QB who would accept a file from one or more of
    us and analyze it, and get back to us. I'm not convinced the program is
    working correctly.

    Neil


    "John Dann" <> wrote in message
    news:...
    > We need to provide a breakdown of our accounts receivable and accounts
    > payable figures from the end of year trial balance to our accountant.
    > We use the cash accounting system, and the accounts receivable and
    > accounts payable acounts on the trial balance do not agree with the
    > totals of unpaid bills and unpaid invoices when the trial balance is
    > calculated on a cash basis. (But the figures do agree when the trial
    > balance setting is changed to calculate on an accrual basis).
    >
    > I have double-clicked on the figures to bring up the Transactions by
    > Account window, but cannot make sense of the lists. I understood that
    > by using the cash accounting system, invoices or bills are only
    > entered into the system when they are paid, so where do the balance
    > figures come from?
    >
    > Thanks for any pointers in the right direction!
    >
    > (Using QB2005 Pro UK version)
     
    Neil Preston, Apr 11, 2005
    #4
  5. John Dann

    Laura Guest

    I found this posted on the QB Users forum that might help:

    "QB does not always create a true cash report. It depends on what type of
    business you have and what items you have in your AR and AP transactions.
    You may have to make the final adjustments manually. The only AR and AP
    transactions to come off on a cash basis report are those connected to
    income and expense accounts. If a balance sheet account is used on any of
    those transactions, then they stay on and have to be manually adjusted on
    your reports. If AR has a negative balance then it is usally because of
    unapplied payments. Pull up an Open Invoices report and look for any
    negatives. If the customer is not using the correct procedures to record
    payments, then this will always hang up the cash basis report. If you find
    both whole and negative numbers on this report you need to use the Receive
    Payments function to apply the payment correctly to the invoice. If AP has a
    negative balance then it's usually due to to an overpayment to a vendor
    using the Pay Bills screen or a check that was charged to AP. You have to
    run an Unpaid bills report and again look for positive and negative numbers
    and use the Pay Bills feature to apply the credits to the unpaid bills. Any
    other adjustments have to be done manually."

    So look in the Balance Sheet detail on a cash basis and see which entries do
    not net to zero. Maybe that will isolate the entries you are looking for.

    "Neil Preston" <> wrote in message
    news:1Ei6e.97$...
    > I'm battling the same problem with a current question (See "Balance sheet
    > Cash basis A/R" posted 4/6). If you do a Google search in Google Groups,
    > you will find quite a few messages about the problem, with no real
    > answers.
    >
    > The QB support site has a knowledge base article which tries to address
    > the
    > issue:
    > Determining which transactions make up the A/R and A/P balances on a
    > cash-basis balance sheet report
    > KB ID#: 122646
    > Categories: Accounts Payable, Accounts Receivable
    >
    > It identifies criteria which cause a transaction to be listed in the A/R
    > register. However, in my current balance sheet I have transactions listed
    > that cannot meet any of those criteria, so it makes no sense. (For
    > example
    > a transaction entered in January '04 paid within a couple of days in cash,
    > and for which the sales tax liability was paid by the end of first
    > quarter.)
    >
    > The really irritating thing is that the Balance column simply appears to
    > be
    > the sum total of the gross profit on each item listed.
    >
    > I wish we knew of someone at QB who would accept a file from one or more
    > of
    > us and analyze it, and get back to us. I'm not convinced the program is
    > working correctly.
    >
    > Neil
    >
    >
    > "John Dann" <> wrote in message
    > news:...
    >> We need to provide a breakdown of our accounts receivable and accounts
    >> payable figures from the end of year trial balance to our accountant.
    >> We use the cash accounting system, and the accounts receivable and
    >> accounts payable acounts on the trial balance do not agree with the
    >> totals of unpaid bills and unpaid invoices when the trial balance is
    >> calculated on a cash basis. (But the figures do agree when the trial
    >> balance setting is changed to calculate on an accrual basis).
    >>
    >> I have double-clicked on the figures to bring up the Transactions by
    >> Account window, but cannot make sense of the lists. I understood that
    >> by using the cash accounting system, invoices or bills are only
    >> entered into the system when they are paid, so where do the balance
    >> figures come from?
    >>
    >> Thanks for any pointers in the right direction!
    >>
    >> (Using QB2005 Pro UK version)

    >
    >
     
    Laura, Apr 11, 2005
    #5
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