Cash Basis/Accrual Basis Accounting

OPERATION:

Accounts Payable and Accounts Receivable are active only in the primary company, which is running on an accrual basis.  The setup program allows the user to specify, from the accrual company, what company is the corresponding cash-basis company.  As Accounts Payable checks and Accounts Receivable cash receipts are updated, the appropriate cash-basis postings are made into the Daily General Ledger Transaction file of the cash company.  All postings are made based on the original invoice distribution entered in Accounts Payable and Accounts Receivable Data Entry.  To further ease the processing, when running the Daily General Ledger Transaction Register in the accrual company, the user will be prompted to also run it for the cash company of there are any postings there.  This enhancement is also available for both Sales Order and Purchase Order.

When processing General Journal Entries, Transaction Entries or Recurring Entries in the General Ledger of the accrual company, the user may choose, on an entry-by-entry basis, to have the posting also post into the cash company.  Other MAS 90 · MAS 200 modules can be set to have their postings duplicated in the cash company.  For example, Inventory Management, Job Cost and Payroll can be set to do so.  These features ensure that the cash company will have a complete set of books, including the postings that are not cash/accrual oriented.  Since the cash company is simply a standard MAS 90 · MAS 200 company with its postings, the user may change to the company to make any postings that are only relevant to it.