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What we are requesting is an Australian accounting standard.

This is the workaround that I received from a Xero Partner Assist Specialist today:

'To include depreciation amounts on your cash reports, you'll need to add two manual journals:

One to reverse the Xero-created journal – ensure 'Show journal on cash basis reports' is unticked, then click Post

One to add a journal the same as the Xero-created one – ensure 'Show journal on cash basis reports' is ticked, then click Post'

This is not ideal, but at least there is a way to include depreciation expense in a cash basis P&L (without double counting).

It is ridiculous that an otherwise good software has such poor deprecation and fixed asset features and is wasting it's time doing fancy analytics stuff which is not nearly as useful as just working properly as accounting software.

Xero need to stop working on AI "analysis" that no-one asked for and put resources into getting the Tax software working correctly. Sure it isn't '****', but it is a basic fundamental tax-accouting function and you don't put resources into it. This is ridiculous.
Xero need some actual Accountants on staff.

When is Xero going to take this issue seriously? How many votes will it take before someone takes notice and fixes this?

You can tell that Xero have NO IDEA how to actually work as accountants...

A 'cash flow' report (a specific report), indeed, wouldn't include depreciation - because no money has been spent - but WOULD include asset purchases in their entirety!

On the other hand, preparing regular reports on 'cash basis' (vs on 'accruals basis') DOES include depreciation - it simply doesn't include Accounts Payable or Receivable.

Will anyone from Xero bother to comment?

Will they continue to make us report bugs and failures of their program in the 'Product Ideas' forum?

My guess, respectively, is 'no' and 'yes'...

What the actual?
First time having a year with a depreciating asset and I was trying to work out why my "profit" for the year was so high.
Only to discover that the depreciation expense was just....missing...
There is good functionality to create assets....but seemingly rubbish functionality to track them. What a crock!

EDIT: and now I can't even find an article that describes how to work around this fault.

Canceling my subscription and going elsewhere if this isn't worked out soon

Xero P&L on cash basis must also include depreciation. This is not a cash-flow report. Depreciation should be included in both cash & accruals reporting. If it is an option for small business to use cash reporting, and this is small business software, how can it possibly be excluded? Ridiculous to have to manually enter. In my opinion this produces an incorrect financial report and potentially an incorrect tax return, for which Xero should be held accountable.

Xero caters to Small Businesses, many of which are entitled to use Cash reporting, so why is this not an option? Sure Depreciation doesn't belong in a Cash Flow report, but a Cash P&L is not a Cash flow report. It is almost like there aren't Accountants working on this software

This needs to be fixed as a matter of urgency, we are paying top dollar for your software and this is a basic accounting issue.

As most people have pointed out, this is unacceptable.

For the price Xero charges this basic functionality should exist and be well developed.

It is not acceptable to have to enter a journal to show depreciation on cash basis reports. When accrual basis reports are run, then it is doubled up!

Xero's depreciation and fixed assets register is very poor compared to the rest of it. Writing off pooled items also continues to be a big issue.

Unless this is fixed ... I am moving away to quick books for sure

The fixed assets depreciation would be useless for those businesses using cash basis without this feature being fixed up

It would be very useful to see this fixed.

This needs to be fixed asap - we shouldn't have to create manual journals as a work around.

Please , we have clients asking for cash basis accounting

Oh this is surely a quick fix for reports?
Essential to our work. Please prioritize Xero!

Each month I am having to manually enter journals to record the depreciation which is calculated using the Asset Register. It's crazy that depreciation wouldn't show on a cash basis report. Hoping it gets fixed soon!