Hi JDiaz ,

Thanks again for your question! Based on GAAP principles, Sage 50 is working as designed. Delivery orders are commitments rather than recognized sales, so they should not impact the income statement until they are invoiced. This ensures that revenue is recorded only when it's earned, keeping your financials accurate.

To ensure that delivery orders do not affect your income statement and to hide accounts with zero balances, please follow these steps:

1. Navigate to Setup in the top menu bar.

2. Select Settings, then go to Customers & Sales.

3. Under the Invoices and Rec. section, select Delivery Orders.

4. In the Delivery Orders settings, you'll find two key accounts:

   • Uninvoiced Goods & Services Provided: Make sure this account only tracks items that haven't been invoiced yet, ensuring they don't affect income prematurely.
   • Gain/Loss when Invoiced: Configure this to record any gains or losses when the invoice is created, which is when revenue should be recognized under GAAP.

   Here’s a screenshot to help guide you:

Once you’ve verified the accounts, you can hide accounts with zero balances from your income statement by following these steps:

1. Go to Reports and select Income Statement.

2. Under Report Options, check Hide Accounts with Zero Balance.

   Here’s a screenshot of the report options:

By doing this, the accounts related to delivery orders will only appear when there’s a balance, ensuring your reports follow proper accounting guidelines.

For more detailed information, you can also refer to these knowledge base articles:

• Modify Delivery Orders Settings
• Some Accounts with Zero Balance are Missing from the Income Statement

Hope this clarifies things! Let us know if you have further questions.

Warm Regards,
Erzsi

If this helps, please mark it as verified :)