Use Case Background:

Goal: Date for go live: 01.01.2023 

(Assume the fiscal year starts on April 1st)
We go live with profit and loss amount (P&L)

Localization: United states 

(should apply to most countries)

Anglo Saxon

Accrual Basis

Balance sheet Accrual Basis 01.01.2023

As for accrual basis, imagine the balance sheet contains account receivable amounts, bank balance, income, and expense. (If the go live date is the same as fiscal year (e.g.: 12/31 for some companies), then we can have profit and loss accounts with $0 balance). In the example below, I still have income balance to differentiate the accrual basis vs. cash basis.

As standard go live process in Odoo, we would create a current asset account called Account receivable clearing (AR Clearing) and change receivable account to AR clearing in the balance for open balance import.

In the example below, we can understand that we made total sales (Product sales (income)) for $350. For $100 we have collected the money to the bank, so open invoice (AR clearing) has $250 left.

Open invoice Accrual Basis 01.01.2023
Due to the invoice logic in Odoo, it will always show default receivable amount in Debit side. So, to offset the AR clearing account (Debit) from the balance sheet, we will use AR clearing account in the open invoice (Credit side). 

Note: The go-live-invoice is different from the post-go- invoice. For those post go live invoices, they are NORMAL invoices where it Debit account receivable account and Credit income account.

Cash Basis

Balance sheet Cash Basis 01.01.2023

Based on the balance sheet from accrual basis above, we will remove all the open invoice amount from AR clearing account and income account. So, our income account $100 shows the invoice with collected amount.

Instead, the open invoice (account receivables) amount directly comes from open invoice not open balance.

Open invoice Cash Basis 01.01.2023

Different from the open invoice accrual basis, there is no AR clearing account needed to be offset, we can import the open invoice as normal post go live invoices which is Receivable account in debit (default Odoo invoice rule) and income account in credit side.

Notes: For cash basis open invoice, it is the same invoice between go-live-invoice vs. post-live-invoice

Conclusion:

After import balance sheet for cash basis and import open invoice (cash basis), the profit and loss (P&L) statement as of 01/01/2023 shows $100 on the income account.

Assume we receive the money on 1/20/2023 from the $250 open invoice on 12/9/2022, now the P&L remain the same from 01/01/2023 until 1/19/2023. On 1/20/2023, P&L report shows $350 income.