Dynamics Community Forum Thread Details

Cash Basis Reporting

Is there any method to convert the financials from accrual to cash basis in Dynamics 365 for Financials or support multiple sets of books?

Categories:

Financial Management

Hello Brian,

Dynamics 365 for Financials by design is Accrual Basis accounting...so to covert anything to cash basis would likely need to be done outside of Dynamics 365 for Financials. You could record sales and payments, and vendors and payments all at the same time which would be similar to cash basis because you would have no payable or receivable balances, but this may not get you exactly what is needed as our reports are based on Accrual Accounting.

You could use Payment Method to accomplish something like Cash Basis accounting. For example in sales: A Payment Method with a Balancing Account identified automatically Credits the A/R Account and Debits the Bank Account or G/L Account as the Balancing Account entry, for example. The Balancing Account in Payment Method lets the Credit to AR and Debit to Cash be automatically posted and generates automatic Cash Basis accounting.

You could setup a Bank Account Card for Petty Cash, where basically it's the on the spot-storefront cash and it stores the cash in that Bank Account/Petty Cash until it is transferred/deposited into the company's regular Bank Account. The Petty Cash Bank Account is the Balancing Account in Payment Method setup that automatically clears the customer A/R and increases case Balance Sheet Account assigned to the Bank Account for Petty Cash.

Regarding different Books, I believe you are referring to having a Accrual book and a Cash Basis book, this is not possible in Dynamics 365 for Financials. If you are referring to Fixed Assets books, then yes this is possible to have different Fixed Assets books for a GL integration and others for Taxes, etc.

Warmest Regards,

Jennifer Reinhardt

Please see our Dynamics 365 Financials Support Team Blog for helpful information:

blogs.msdn.microsoft.com/dyn365finsupport

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