This field is found in the Management Group, Owner, and Property profiles.
The accounting method can be cash, accrual or modified cash. Each profile can have a different default accounting method for reporting. The system automatically maintains cash, accrual, and modified cash transactions simultaneously. This means that you can run reports for any owner based on any accounting method at any time or change accounting methods without having to post adjusting transactions.
Cash
Income and expenses are reported as the cash balances change, i.e. as the transactions are posted. Income (receivables) is reported when received and expenses (payables) are reported when a check is written.
Accrual
Income is reported when earned (charged) and expenses are reported when they are incurred (posted). Rental income, for example, is considered as income when it is charged rather than when it is received. Invoices (payables) are reported as expenses when posted rather than when a check is written.
Modified Cash
This method treats charges (income) on an accrual basis and payables (expenses) on a cash basis.
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