[GNC] Actual income

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[GNC] Actual income

Martijn Heuts
Hello,
I am trying to understand my 2018 reports and the actual (net) 2018 income.
I realize that the 'Cash Flow' report does not subtract any refunds from the total. 
The 'Income Statement' and 'Balance Sheet' reports do include the refunds, however these reports also include any invoices charged out whether they were (partly) paid or not. This unpaid balance goes to AR. Probably 60% of the AR is written off at our office as we work with insurance write-offs which we process at the time of the insurance payment (usually 30-90 days later, so part of our AR payments and write-off's are processed in 2019).
The point I am trying to make is that the 'Cash Flow' report doesn't show how much income we really hadas we had refunds in 2018 and the 'Income Statement' and/or 'balance sheet' report doesn't show how muchincome we had as these reports do not show 'income' but they show 'charges'.
Is there a report what shows the actual income I had in 2018 without the refunds and AR?Perhaps in the Cash Flow report can I filter out refunds? If so that would be the answer, I guess?
Thanks for all you do!
Martijn



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Re: [GNC] Actual income

Christopher Lam
The cash flow report is not very well documented nor understood. There are
users who report bugs based on incomplete understanding of issues and
design decisions made by the report writers.

I strongly recommend tweaking the Transaction Report which is much more
predictable, and if you select the *correct* source accounts, will never
fail to produce predictable reports.

With regards to your business processes above I am very sorry it's not
exactly detailed enough to show the accounts, account-types, and
transaction flow of amounts. Your best bet would be to recreate a sample
datafile and submit in bugzilla.

On Tue, 26 Mar 2019 at 22:48, Martijn Heuts <[hidden email]>
wrote:

> Hello,
> I am trying to understand my 2018 reports and the actual (net) 2018 income.
> I realize that the 'Cash Flow' report does not subtract any refunds from
> the total.
> The 'Income Statement' and 'Balance Sheet' reports do include the refunds,
> however these reports also include any invoices charged out whether they
> were (partly) paid or not. This unpaid balance goes to AR. Probably 60% of
> the AR is written off at our office as we work with insurance write-offs
> which we process at the time of the insurance payment (usually 30-90 days
> later, so part of our AR payments and write-off's are processed in 2019).
> The point I am trying to make is that the 'Cash Flow' report doesn't show
> how much income we really hadas we had refunds in 2018 and the 'Income
> Statement' and/or 'balance sheet' report doesn't show how muchincome we had
> as these reports do not show 'income' but they show 'charges'.
> Is there a report what shows the actual income I had in 2018 without the
> refunds and AR?Perhaps in the Cash Flow report can I filter out refunds? If
> so that would be the answer, I guess?
> Thanks for all you do!
> Martijn
>
>
>
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> https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
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Re: [GNC] Actual income

Adrien Monteleone-2
In reply to this post by Martijn Heuts
Income = Revenue - Expenses

The Income Statement is showing you the correct amount.

Your issue with it is that you are using an accrual method of accounting but you want a cash-basis figure. (You are booking Revenue when you earn it with invoices — proper for the accrual method, but you only want to book it when you actually receive payment — that’s cash-basis)

You can abandon the Business Features and change your workflow, or...

Either play with the Cash Flow report to get where you want, or even better, investigate the use of a special account called “Allowance for Doubtful Accounts”. There is plenty of literature online to help with how that account is used. You will be estimating the amount of A/R that is uncollectible and then making adjustments as you determine exact values in later periods.

The Balance Sheet is not intended to report annual Income, it is a snapshot of Assets, Liabilities and Equity on a specific date. (If you are in the habit of closing the revenue and expense accounts each year as Retained Earnings to Equity, this will show you the aggregate retained, but not for any particular fiscal year or calendar year)

Also, I highly recommend you speak to a local CPA. They can guide you on how to keep your books, set up your chart of accounts, and which reports give you which information and they can do so with your local laws and requirements in mind for your particular situation.

Regards,
Adrien

> On Mar 26, 2019, at 9:45 AM, Martijn Heuts <[hidden email]> wrote:
>
> Hello,
> I am trying to understand my 2018 reports and the actual (net) 2018 income.
> I realize that the 'Cash Flow' report does not subtract any refunds from the total.
> The 'Income Statement' and 'Balance Sheet' reports do include the refunds, however these reports also include any invoices charged out whether they were (partly) paid or not. This unpaid balance goes to AR. Probably 60% of the AR is written off at our office as we work with insurance write-offs which we process at the time of the insurance payment (usually 30-90 days later, so part of our AR payments and write-off's are processed in 2019).
> The point I am trying to make is that the 'Cash Flow' report doesn't show how much income we really hadas we had refunds in 2018 and the 'Income Statement' and/or 'balance sheet' report doesn't show how muchincome we had as these reports do not show 'income' but they show 'charges'.
> Is there a report what shows the actual income I had in 2018 without the refunds and AR?Perhaps in the Cash Flow report can I filter out refunds? If so that would be the answer, I guess?
> Thanks for all you do!
> Martijn

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