Accounting Method(s)


Instead of a process, this is a concept. There are basically two kinds of accounting methods; a) accrual, and b) cash. The Advantos Enterprise application adhers to Generally Accepted Accounting Principals; that being accrual basis accounting. However, management companies can configure Advantos Enterprise to operate in a cash-basis environment.

In order to configure Advantos Enterprise as a cash-basis application, one has to accomplish several tasks:

  • build a custom G/L chart of accounts
  • assign the A/R account#s with an income class code
  • consolidate these A/R account#s into their associated income account#s
  • maintain the A/R Mapping configuration file
  • set the A/P accounting method in the Client Maintenance form as cash-basis..

The A/R mapping file will not be used if the A/P accounting method, in the client file, is defined as "accrual". Remember this! This allows a user to run a cash basis accounting system and have a few clients run an accrual accounting system.

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