Cash Basis with Non-Stock PO’s

Apr 1st, 2011

In a prior article on Cash Basis I covered how it should be setup.  Now for a real example.  When Standard Vouchers are paid and Cash Basis kicks in, it uses the voucher’s Expense GL coding for the debit, and cash account for the Credit.  Similarly in AR:  when cash is received, Cash Basis uses the invoice’s Income GL coding for the credit, and cash account for the Debit.

But what will Cash Basis do for non-standard vouchers?  For example, if the voucher is created via a 3-way match?  Where will the offset to the cash account come from?  To find out, I setup a test.

1. Enter a new non-stock Purchase Order.  It has 2 lines:

Line 1 is Type N for Non-stock Item
Line 2 is Type J for direct charge to Freight Account Number M30.8730

2. Perform a partial Receipt on both lines

3. Match voucher to open receipt (3-way match)

4. Review the voucher’s GL Distribution.  It has 2 lines, both coded to RNV (Received not Vouchered)

5. Pay the voucher either by Manual or Automatic Payment.  Post the payment batch

6. Review the Cash Basis batch.

Credit to the cash account
Debit to RNV for the non-stock Item
Debit to Freight Account Number M30.8730 for the line type J

So there we have it.  Cash Basis debits the RNV accounts for non-stock PO’s.

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