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Cash and Cash and Equivalents Reporting including Paypal

Chris_SHCC1Chris_SHCC1 Member Posts: 21

Hi all

Can get I get a deeper meaning of the above please?

Example: Looking at my GST account for Q3 I see in the cash report the one invoice paid in that period is not included. It is however included in the cash and equivalents report?

Why so? Both methods are Cash based. I thought cash equivalents are for credit cards of which I don’t have any. Why doesn’t Cash pick up settles invoices in its simplest form?

Many thanks
Chris

in Accounting Technical Support

Comments

  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    Hi @Chris_SHCC1 . Your understanding is correct. Cash Only is only cash from something like a bank account. Cash & Cash Equivalents includes other things like credit cards, liabilities etc.

    On the invoice that isn't being included, can you confirm the payment account that you used to mark it as paid?

  • Chris_SHCC1Chris_SHCC1 Member Posts: 21

    Hi Alex

    Yes I think I worked it out. I only have one bank account however I need input my invoice sales via a Money in Transit "account" to seperate out commission charges. So the transaction although received into my one bank account, its not received "direct" to the bank account. Hence not seen in Cash Only. Am I right?

  • JamieDJamieD Administrator Posts: 1,156 admin

    That's correct @Chris_SHCC1. Since it's a Money in Transit (accounts receivable) account, it won't actually appear in the Cash Only report since the funds haven't landed just yet (or so, our system is reading that way based on how you have it setup).

  • brucehvnbrucehvn Member Posts: 5

    I need to expand on this. I have a Money In Transit account called Pending Deposits where I direct all payments from CC or check until the funds actually get deposited into my bank account either by the payment processor, or when I deposit checks.

    When I look at the "Cash Only" cash flow report, it gives me the proper values, but doesn't give me a breakdown of the income and expense accounts. If I do "Cash and Cash Equivalents", it does give me the breakdowns, but it also shows the transfers such as from Pending Deposits to the bank account which essentially doubles my total sales and it also gets the transfer when I pay my credit card, so that gets added into the total purchases throwing everything off.

    For my accountant, I essentially need the "Cash and Cash Equivalents" report, but I don't want the transfers on there. Is there a way to get that?

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