On 11/02/18 15:46, Robert Heller wrote: > Here is a "practical" application: > > Lets say you buy a case of tomatoes for $10 -- this would be a transaction > from your bank account (for the check you gave the vegetable wholeseller) of > $10 to your Assets:vegetables account. (It is not actually an expense!). Then > you sell that case of tomatoes for $12. This would be a split transaction: $10 > from your Assets:vegetables account and $2 to an income account. The $12 would > come from whatever account the $12 was paid into (eg "Cash" if it was a cash > transaction). This brings the Assets:vegetables down to zero (you have no > vegetables in stock right now). At the end of the year you generate a report > showing the Assets:vegetables at the beginning of the year and and the end of > the year. The difference is your "cost of goods sold" -- this is what goes on > your tax form (actually, the form has your inventory at the beginning of the > year, and your inventory at the end of the year, plus whatever you spent to > acquire your inventory during the year, at least that is how the 1040C form > works and I guess theo 1040F is similar).
Our emails crossed. I see what you mean, but I don't think the tax authorities would find that particularly legal here. It would also make VAT computations impossible, I think, although we are exempt from VAT. Thanks for explaining clearly! -- Jeff Abrahamson +33 6 24 40 01 57 +44 7920 594 255 http://p27.eu/jeff/ _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
