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Re: GAAP (was Re: Patch for serious bug in LedgerSMB 1.2.16)



On Friday 13 February 2009 11:43:12 David F. Skoll wrote:
> Sorry if this is getting off-topic for the devel list...
>
> > BTW, these aren't just non-standard workflows.  From an accounting
> > perspective, they are wrong workflows because they break auditability.
> >  Technically, you aren't supposed to ever change a posted invoice.
> > Ever....
>
> OK.  The only reason we repost invoices is to correct typos in the
> description of line items.  What is the GAAP way to do that?  Cancel the
> invoice and make a new one?  If so, I'll ask our AP person to start doing
> it that way.
>
> Regards,
>
> David.
>
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In the USA GAAP is not written in law, although the U.S. Securities and 
Exchange Commission (SEC) requires that it be followed in financial reporting 
by publicly-traded companies.
There is no law in the USA requiring a one man shop of small business to 
follow GAPP.
However if you are following it and a small business:

Quickbooks caters to small businesses and one man shops and is a Nationaly 
accepted piece of software by the IRS. Therefore can be used as a reference.

Quickbooks allows you to edit and resave an invoice at the users discression.
There would be no need for an accounting program to behave differently.


(This is an opinion but our attorney and accountant agree.) 

-- 
Cheers
Turtle 


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