Overpayments Cash Basis Profit and Loss

Support
1

Hi

How does QF deal with Overpayments for a cash basis Sole Trader

For example invoices for the year total £1000 and payments £1200

The reports for non cash basis show £1000 and cash basis a different figure - should this be £1200?

I have allocated some of the invoices with overpayments from the previous year - is this why?

Thanks

2

Hello @Twins1998

I have allocated some of the invoices with overpayments from the previous year - is this why?

This would be the cause as the payments are not affecting the profit and loss until the allocation is made.

3

Thanks Steve, exactly what I thought