cash basis vs accrual basis

Sylvia Cook

I was talking to someone today who is new to NXT, and we wanted to confirm whether their system was set up as cash basis vs. accrual basis. We couldn't find anywhere in the settings to confirm this. Does anyone here know where to look?

The reason I ask is that for them, expenses only show in reports once the payable is paid.

Callum Everhart

It's a bit of a hunt, but you can find it under the hood. You are not the first to get lost in NXT settings. The system doesn't shout it from the rooftops, but the setting lives in the backend accounting configuration. Because NXT is designed to handle both, the option is usually found during the initial system setup.

Since you are seeing expense reports only when paid, that is a classic sign of cash basis accounting in action. Here is the exact path to verify it:

1. From the main menu, click the gear icon for Settings.
2. Navigate to General Ledger and select GL setup.
3. Look for the section related to Accounting or Business Rules.

It is likely not a simple toggle you will find right away. If the option isn't immediately visible, you might need to check the settings for how Accounts Payable processes are configured, as that directly dictates when an expense is recorded. Once you have a clear confirmation, update your team on the finding.

Sylvia Cook

Thank Callum, but still no luck in finding this.

Kevin Brazell

Previously in Database view under the very initial setup of a Database, you could say for profit (cash basis) or non profit , accrual basis. But it was only in the initial setup, not anywhere else in configuration or administration of the DB view. But that function is not supported in Webview. I could have sworn the original Total Web Solution out of scope KB listed it, but that has been updated over time and no longer see it listed on that KB article.

Sylvia Cook

https://community.blackbaud.com/discussion/comment/316113#Comment_316113

Thanks. I agree I thought I saw it before, but can't any longer. Thanks for your help.