Forum Discussion

rbme's avatar
rbme
Contributing User
4 years ago

Cash vs Accrual P&L Income account imbalance

Hello, I don't know if I selected the right location.  I have run 2 P&Ls.  Once Cash and one Accrual.  The balance of the income account in Cash is higher than the Accrual income balance.  I may be ...
  • Mike_James's avatar
    Mike_James
    4 years ago

    Hi rbme , welcome to the forum. Have a look at the value of debtors in your balance sheet at the beginning and end of the period of the income report. If the ending value is less than the starting value, that would explain the difference. 

     

    To take a simple example, if a business had $100 owed to it at the beginning, and nothing owed to it at the end, and raised no sales invoices during the period. the cash report would show $100 of income (ie receipts) and the accrual report would show nothing. 

Mike_James's avatar
Mike_James
Ultimate Partner
4 years ago

Hi rbme , welcome to the forum. Have a look at the value of debtors in your balance sheet at the beginning and end of the period of the income report. If the ending value is less than the starting value, that would explain the difference. 

 

To take a simple example, if a business had $100 owed to it at the beginning, and nothing owed to it at the end, and raised no sales invoices during the period. the cash report would show $100 of income (ie receipts) and the accrual report would show nothing. 

  • rbme's avatar
    rbme
    Contributing User
    4 years ago

    Thank you. I am new to all this but had just worked it out and was checking to see if I was right.  Thank you for confirming.

     

    Kind regards

Looking for something else?

Search the Community Forum for answers or find your topic and get the conversation started!

Community home

Dig into MYOB Academy for free courses, learning paths and live events to help build your business with MYOB.