Changeset - e968357058e9
[Not reviewed]
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Bradley Kuhn (bkuhn) - 7 years ago 2013-11-14 17:25:38
Add Work flow use case.
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@@ -24,6 +24,7 @@ You should add your use case as a subpage of the [[UseCases]] page, to create a
- [[Handling contractors and contracts|UseCases/ContractorsAndContracts]]
- [[Handling multiple currencies|UseCases/MultiCurrency]]
- [[Draft transactions and approval|UseCases/DraftTransactions]]
- [[Workflow for Non-Profit Accounting|UseCases/WorkFlow]]

### Technical-User-Center Use Cases

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# 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.

## The "Unaccrued Invoice" Example

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

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.
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