How to switch Grain from Accrual Basis to Cash Basis Accounting
(Posted by: Lisa Sick 02/01/08)

The default is Accrual Basis accounting.

Accrual Basis accounting will post transactions the following to the general ledger:

• Purchases and discounts when a load is priced.
  
• Drying and hauling will be posted immediately unless the Lot interface is used or when discounting on average grades.
  (The lot interface will post the transactions when the grades are entered and discounting on average grades will post when the loads have been averaged.)

Cash Basis accounting will post to the general ledger when the commodity is settled unless the discounts, drying, hauling are billed to the customer's Accounts Receivable account.

It is suggested to run this after a month has been closed and before a new one has been started.

The following steps should be done:

1. Settle as much grain as possible and run a grain end of day.
   
   
2. Go to the Grain File Seup Main Menu - Option and change this question to 'Y':
   
   G/L Transactions on Cash Basis
   
   
3. Have all users sign off of the Grain package.
   
   
4. Run a control report before reversing the journal entries. Go to the Purchase Control Reports Menu and run a control report by Crop with the following parameters:
   

   Report Type	2	(2 lines of detail)
   Total Lines Only?	N
   Print Ledger Lines?	Y
   Current Info Only?	Y

   
   
5. Type the following on a command line:
   
   U5GLC2C and press F4
   
   Enter the date to use to generate the journal entries for the cash basis accounting. If you are starting a cash basis accounting in February, use Feb. 1 as your date.

   This will back out Gross amount, Discounts, Drying Charges, Hauling, and Handling posted to G/L (Posted code = 'G').  It will not reverse out any charges that have been billed to A/R (Posted code = 'R').

6. Go to the General Ledger Transactions Screen - Option 5 on the Grain End of Day Menu and run ONLY these options:
   

   Print Detail Transactions and Payments Reports
   Summarize Detail Transactions
   Merge Summarized Transactions to General Ledger
   

7. Run another control report after reversing the journal entries. Go to the Purchase Control Reports Menu and run a control report by Crop with the following parameters:
   

   Report Type	2	(2 lines of detail)
   Total Lines Only?	N
   Print Ledger Lines?	Y
   Current Info Only?	Y

Have a great day!

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