How to set it upIt is possible to migrate from cash accounting to accrual accounting in the Accounting application’s settings page.
Enabling accrual accounting is an irreversible process. Once you migrate to accrual accounting, you can’t go back to cash accounting.
Accrual accounting allows you to manage your accounts receivable.
Enabling this option creates a new accounting item: accounts receivable. By default, memboGo creates a new “accounts receivable” accounting item.
You cannot delete or create a new “accounts receivable” accounting item; memboGo allows you to use only one such account. However, you can rename it.
How it works
Once accrual accounting is enabled, all indirect payments made through your site (such as checks and transfers) will be recorded under this accounting item.
For example, if one of your members pays for an event by check, the transaction will be displayed in your accounting application as follows:
When you receive the check, you can enter it in the system and the transaction will be displayed as follows:
The payment will appear under the “check” accounting item, and the same amount will be deducted from the “accounts receivable” accounting item.
If the member decides to pay by credit card instead, the “banking” accounting item will be credited with the amount.
Lastly, if the member decides to cancel their registration, you will need to cancel the registration in the Events module and manually add a journal entry. Manually adding a journal entry allows you to have more control over refunds based on your refund policy (for example, full or partial refund depending on the cancellation date).