Setting up accrual-basis invoices and postings

In accrual-basis accounting, a sale is recorded when the goods or service are delivered, not when payment arrives. Similarly, a purchase is recorded when it is received, not when it is paid. NoCFO can automate these postings along with your invoices.

1. Enabling accrual basis

1. Go to Settings → Invoicing and collection → Numbering and defaults

2. Click Edit

3. Set Accrual-basis postings: Yes

2. Checking the default bookkeeping accounts

Go to Settings → Bookkeeping settings and automation → Default bookkeeping accounts and make sure the correct accounts are set for the following:

• Accounts receivable

• Accounts payable

Sales invoices

Setting a default account for a product

Go to the Products tab, open the product for editing, and choose the bookkeeping account the sale is recorded to for that product.

If no default account is set for the product, the accounts receivable posting is created as a draft for the selected accrual date, and you need to choose the account manually.

Creating an invoice

When you create a new invoice, the software asks for the accrual date. The accounts receivable posting is automatically assigned to this date.

Purchase invoices

A draft accounts payable posting is created automatically from purchase invoices. The posting date is set to the invoice date. You can change the date or the bookkeeping account if needed before approving it.

How do I tell whether something is a bank transaction or an invoice posting?

Open the transaction and go to the Source information tab. It shows the origin of the transaction — whether it is a transaction imported from the bank, an accounts payable entry created from a purchase invoice, or an accounts receivable entry created from a sales invoice. The same information can also be found on the transaction's Log tab.