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Sandy Burleigh
February 16, 2023
Question

Accounting Period

  • February 16, 2023
  • 1 reply
  • 0 views

Why is quickbooks using the date of an invoice or check for the accounting period?????? Why isn't it like other ERP's where the transaction date drives the accounting period. Because of this lack of functionality, the vendor ledgers are sloppy at best

1 reply

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SirielJeaB
February 16, 2023

We are grateful that you are back in the Community forum, Sandy. We appreciate you using the Community to voice your concerns. Please allow me to provide you with some information on this.

 

I understand how convenient it is for you to choose the basis of accounting period you want to display in your QuickBooks Desktop.

 

The accounting period in QuickBooks is determined by the accounting method employed. When using the accrual basis, the accounting period is when you enter a transaction, pay, or receive cash. On the other hand, if you operate on a cash basis, the accounting period begins when you receive a payment or pay a bill. Moreover, how the accounting period is displayed is one of the features of the QuickBooks Desktop.

 

You might want to read the following article for more information on personalizing and adding specific information to your invoice and other form styles in QBO: Customize sales forms.


Visit this article to learn the difference between Cash and Accrual basis and how to set them as preferences in QuickBooks Desktop for Windows: Differentiate Cash and Accrual basis.

 

Keep us posted if you need further clarifications regarding the accounting period in QuickBooks Desktop. We're available 24/7. Have a nice day!

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frank1003
February 16, 2023

another useless answer from the QB Team (Thanks again)...

 

ONE real solution would be to do what EVERY accounting system does. Allow a batch of expenses to be entered with the date incurred, Then allow the user to go back in and pay the batch, on the real payment date.

 

Another more painful would be to have each LINE of entry carry it's own date.

Then the expenses line could be dated when incurred (along with a matching credit to A/P), and a payment (cash) line could be the true present date (along with a matching debit to A/P). The QB system should insure that the debits and credits to any date will net 0

 

QB is extremely frustrating in that they ABSOLUTELY MUST know of this problem, and therefore it's also painfully obvious that they have NO INTENTION of fixing it.

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    Princesstiki2
    February 16, 2023

    I replied in the other thread, but to restate:

     

    It is shocking that QB has not addressed this after all these years.  Do they know anything about Generally Accepted Accounting Standards?  Just using this accounting system could make an auditor question the reliability of a company's financial statements. 

    So, it's February 2023 and I receive an invoice (called a "Bill" in QB parlance) from a vendor dated November 11, 2022.  What is the solution?  Open a closed period in a closed year and enter the bill into payables?  OR put a FAKE invoice date to force it into the current period?  Does that sound like a good practice?  Any decent system has an accounting date for a transaction as well as recording the date on the document.

    I would guess the lack of an accounting date is one of the main reasons companies outgrow QB early on.  Also, the QB Team's lack of knowledge on why this is even a problem does not inspire confidence.

     

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