Files
@ 693748d9dbb4
Branch filter:
Location: NPO-Accounting/npo-accounting-ikiwiki/UseCases/WorkFlow.mdwn - annotation
693748d9dbb4
1.4 KiB
text/plain
Fix wiki links for GeneratingReports page.
e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 19dc97526d69 19dc97526d69 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 e968357058e9 | # Non-Profit Workflow
Many accounting systems seem to assume that the workflow fits a certain type
of uses. While the ability to impose a specific workflow (e.g., for a
bookkeeper who might make an error easily if the system doesn't require a
workflow), the workflow should not be dictated.
## <a id="unaccrued-invoice">The "Unaccrued Invoice" Example</a>
The easiest example I have of this relates to accruing income upon invoice
generation. Non-profits very typically generate invoices as part of a
fundraising discussion *even though* the non-profit doesn't have a good faith
belief that the invoice will be paid. Using an invoice to convince a donor
to make a donation is, in essence, just a fundraising strategy to pressure
for them to commit to a donation that the donor has hinted they might make.
Under GAAP, these invoices should **not** be accrued nor recognized, because
the organization doesn't have a good faith belief that the income is
forthcoming.
Many accounting systems assume that the user would never possibly generate an
invoice without realizing the income immediately. In most for-profit setups,
this is true, but for non-profits, there is good reason to generate invoices
before accruing the income. In fact, if you're generating an invoice merely
to "inspire" a donation, it's wrong to accrue that, since you don't have a
good faith belief that the invoice will be paid.
|