PSA GAAP Compliance - Accounts: Can dedicated accounts be used with the GAAP feature?

Can dedicated accounts be used with the GAAP feature?

Generally Accepted Accounting Practices (GAAP) do not allow the use of dedicated accounts. Therefore, when the GAAP feature is turned on, the software does not allow you to add any new dedicated accounts, and any previously used dedicated accounts must be archived after ensuring they have a zero balance.

The reason dedicated accounts are not GAAP compliant is, dedicated accounts are not income or expense accounts and are not displayed on the Statement of Activities. The absence of income and/or expense accounts distorts the financial statements. For the official pronouncement, please click on the link below to go to the FASB (Financial Accounting Standards Board) website.

 


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