Table of Contents

Introduction

The Gnosis system can optionally support accrual accounting when your books are setup to accrue promised income from pledges.  

In order to do this, there are some additional mappings required for accounts and some additional procedures required in order to post accruals amounts as well as regular batched income.

Accounts Required

At a minimum, there are three “accounts” that need to be setup to handle pledge income that is accrued.  You will use these accounts for:

  1. Income account for recording income received
  2. Asset Account - recording the full pledged amount
  3. Contra-Asset Account - for pledge writeoffs.

These are setup for each pledge type in subscription definitions (in the Process Navigator area) as default accounts to be used for this purpose - as shown below.

 accrual1.png

Account Mappings for Quickbooks

If you are using Quickbooks postings, these accounts will be mapped to Income and asset areas as shown in the graphic from Quickbooks Mappings below.

accrual3.png

Transaction Batches

Accruals are added to special “Accrual Batches” which are created separately in the Batch Management Center.  You create an Accrual Batch in the same way as regular income batches, however you will specify the User as Asset Accrual as shown in the image below.  Accruals will always be posted to the currently open Asset Accrual batch.

accrual4.png

 

Posting to Quickbooks

If you are posting to Quickbooks, you will need to print and post the Accrual batches in the same manner as the regular batches - and on a similar schedule.

accrual5.png

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