I’m going to do a reporting update soon. If there are any reports you feel are missing from Sonar, please discuss here and I’ll try to get them added. If they’ve very complex, they may not make the next update, but I’ll try to do as many as possible.

Would these new reports be able to generate Cash Based reporting?

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If you can determine a method by which we can create an accurate cash based report, using the financial data that is available in Sonar, I’m happy to do one. I haven’t been able to really figure out a good way, and I’ve been working with some other cash basis accounting users, and they haven’t been able to either. Happy to build one as soon as a 100% accurate method can be determined.

Jim, we should work together to try to figure this out. Right now we are exporting 2 or 3 reports and doing a v-look up in Excel to get the numbers we need. The problem as I understand if from Simon is that they can’t associate correctly the payments to the invoices. I might be saying this wrong, but it seemed really convoluted since they basically have this coded as accrual.

We can link payments to invoices, but not to individual services. Since you can only pay an invoice, I can only report that payment for X was applied to invoice Y.

Maybe the best place to start is to figure out exactly what your perfect cash based accounting report would look like (each column, the data it would contain, etc,) and then we can discuss the obstacles.

Right. I knew I was missing something, just couldn’t remember. @JIm_Bouse happy to have a call later this week or next and take a stab at this. I think @Steven_Sugg might be cash based too.

I think that would take us a long way.
I am using FreshBooks right now and it doesn’t care about the particular line items. It is more concerned with the payments. I will have to doublecheck because the reports are something I rarely look at. My book keeper does that.

That’s basically what the revenue report does already, but I think maybe it has to be dated differently.

@simon - the revenue report does a pretty good job of the bulk of the reports.
We need a Tax report that is based on payment date, not just invoice date. See example.


The issue with payment date is that payments are not applied to transactions, they are applied to invoices.

So, as an example, let’s say you have a $100 invoice with $10 in tax and $90 is paid on it, is the tax paid or not? What if $101.50 is paid? Or $3?

The other situation is one where tax has been assessed, but not invoiced - there is no way to pay a transaction in Sonar without any invoice.

If everyone doing cash accounting can come up with a consistent method to handle this, I’m not opposed to building it in, but I would want some consensus from the group of cash accounting users to do it.

I suggest percentage based calculation… If the invoice is 50% paid during the taxing period, then 50% of the tax has been paid.

Once the payment goes above 100%, then that is created as a credit which is not sales taxed. Once a new invoice is created, the credit is applied and tax is calculated at that time based on the “payment” time which happens to correspond with the invoice creation time.

I’m not sure how this can happen. How can a tax be assessed without an invoice?

It would be a debit on the account, just like all other debit transactions. We don’t report on any of them until they are invoiced though, other than in the ‘Uninvoiced Debits’ report.

Is this in reply to the:

If there hasn’t been an invoice created with taxable items AND that invoice paid in part or full, there hasn’t been any tax assessed.

Yes, it was in reply to that.

In regards to the payment situation, what if there are multiple payments applied to an invoice that were added on separate days? I assume you would want to separate that out and calculate the percentage individually?

I’d like to get some input from other people doing cash based accounting here as well, hopefully some others will chime in…

This may be a bit convoluted but here is how we designed the system that has passed sales tax audits in TX:

  1. Invoice is generated and tax amount is generated (saved as PDF with a .1 suffix)
  2. If a payment is made, payment is recorded against the invoice and a new invoice is created (saved as a PDF with a .2 suffix)
  3. This process repeats until 100% of the invoice is paid and a final PDF is generated/saved with all payments listed.

At any point a report can be run against the payments to see where they applied.

Just got off the phone with the Texas Comptroller. They actually have it defined in the rules.$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=3&rl=302

Section (b)(3)(B) speficies:
If the retailer is on a cash basis of accounting, the payment received from the customer includes a proportionate amount of tax, sales receipts, and may also include finance charges. Tax must be reported based upon the actual cash collected during the reporting period, excluding separately stated finance charges.

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Just bumping this back up to the top.

I’d love to use sonar but until the tax reporting works, I can’t.



I won’t be able to dig into this until 1.2, will need a fair amount of work internally to ensure we can accurately do this. I’ll let you know when it’s closer to release.

Sounds good sir.

After chatting with Martha at WISPAmerica a bit more, I think I have this figured out. I’ll have an initial attempt at this in 1.2. Will probably need to be refined over time based on feedback, but check it out and see what you think.