Understanding Cash Basis Accounting Setup

When you use cash basis accounting, the system creates cash basis entries in the AZ ledger based on the accrual entry in the AA (actual amount) ledger. To set up your system for cash basis accounting, you determine the document type that you want the system to use for cash basis entries and, if necessary, set up the document type and assign it to a UDC table. Additionally, you must specify which document types to exclude from creating cash basis entries.

When you set up your system for cash basis accounting, ensure that cash basis AAIs are set up properly. Cash basis accounting uses AAI items to track rounding differences that might occur in the JD Edwards EnterpriseOne Accounts Payable and JD Edwards EnterpriseOne Accounts Receivable systems as a result of using taxes, multiple currencies, or discounts. Cash basis accounting also uses an AAI item to provide a suspense revenue account for the cash basis entry for unapplied receipts.