How is the Income on the Cash P&L determined and does it compare to the Receive Money window?

There is an assumption that if you look at the Receive money window, it should relate directly to the Cash P&L report. Its not that straight forward as a number of things are calculated in the P&L.

Firstly, we need to understand how SILQ deals with the Journals for Invoices. When an invoice is issued, it creates a journal that details the various income accounts. Eg an Invoice that has $1000 of fees, $500 of disbursements and $150 of GST will have a journal that looks something like this:

4-1120 Leasing Income $1000 Credit

4-1500 Disbursement Income $500 Credit

2-1410 GST Collected $150 Credit

1-1200 Accounts Receivable $1650 Debit

So, when calculating the P&L it starts with Receipts for the relevant period. For each receipt it will look at what invoices it has paid off and use the Income accounts in the invoices journal to determine what to put on the P&L

Eg.

Let’s assume the above invoice has a payment of $825 (half the amount due)

It takes the $825 and pro-rata’s the income account amounts.

I.e.

$1000 * (825/1650) = $500 -> Leasing Income

$500 * (825/1650) = $250 -> Disbursement Income

This is done for all receipts in the period.

Credits are allocated to the general Consultancy income Account assuming 10% GST.

In addition to that it will process each of the general income entries and allocate the income to their income account.

If you go to General Journal and enter a manual entry that includes an Income Account, it will be included in the P&L.

If you enter a Receive Money entry and select the Class as Other and then use an Income account that will be included in the P&L

Passthrough accounts will also affect the P&L. When a disbursement uses a Passthrough account and that is included on an invoice, the income associated with recovering that disbursement will be treated as a negative expense rather than being included in the Income section. Refer to the full explanation of Passthrough accounts.

Write Offs, Tax Refund, GST Refund, Capital, and Personal entries will not end up on the P&L.

Why are there no invoices on a Cash P&L?