Re: One account for both Income and Expenses possible?

[Adrien Monteleone]

Looking over the Wiki, I see this point was left out, so I added this text to 
the netiquette section. It’s a bit wordy, but I wanted users to understand why 
this is the preferred method. (since those who would do otherwise, obviously 
don’t understand the implications of disrupting threads)

"If posting a new topic or asking a new question, rather than replying, be sure 
to use your mail client's Compose, New Message, or Write button. This way your 
topic will be listed separately and easy to find. If you simply hit 'reply' and 
edit the subject line, other users' mail clients will treat your message as a 
reply in the chain of the topic you were replying to and the two topics will be 
mixed up together."

Regards,
Adrien

> On Feb 22, 2018, at 6:05 AM, Colin Law  wrote:
> 
> On 22 February 2018 at 11:04, Norbert Klein  wrote:
> 
>> Thank, Maf,
>> 
>> your advice was very clear and helpful - I rearranged what I had used
>> before accordingly.
>> 
>> But you advised me also:
>> 
>> Let me start by saying that you should have started a new thread for your
>>> question and not hijacked the existing thread
>>> 
>> I am sorry - but when I started my mail with "One account for both Income
>> and Expenses possible?" I was not aware that that this was an existing
>> thread.
>> 
>> How can I check - when I start to write something again - that what I want
>> to use is NOT YET an existing thread?
>> 
> 
> 
> By starting a new email to gnucash-user@gnucash.org rather than replying
> to an existing one, if that is what you did previously. Obviously give it a
> meaningful subject line also.
> 
> Colin
> 
>> 
>> Thanks for any advice and help.
>> 
>> Norbert KLEIN
>> still quite new on GnuCash
>> ___
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Re: One account for both Income and Expenses possible?

[Colin Law]

On 22 February 2018 at 11:04, Norbert Klein  wrote:

> Thank, Maf,
>
> your advice was very clear and helpful - I rearranged what I had used
> before accordingly.
>
> But you advised me also:
>
> Let me start by saying that you should have started a new thread for your
>> question and not hijacked the existing thread
>>
> I am sorry - but when I started my mail with "One account for both Income
> and Expenses possible?" I was not aware that that this was an existing
> thread.
>
> How can I check - when I start to write something again - that what I want
> to use is NOT YET an existing thread?
>


 By starting a new email to gnucash-user@gnucash.org rather than replying
to an existing one, if that is what you did previously. Obviously give it a
meaningful subject line also.

Colin

>
> Thanks for any advice and help.
>
> Norbert KLEIN
> still quite new on GnuCash
> ___
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Re: One account for both Income and Expenses possible?

[Norbert Klein]

Thank, Maf,

your advice was very clear and helpful - I rearranged what I had used 
before accordingly.


But you advised me also:


Let me start by saying that you should have started a new thread for your
question and not hijacked the existing thread
I am sorry - but when I started my mail with "One account for both 
Income and Expenses possible?" I was not aware that that this was an 
existing thread.


How can I check - when I start to write something again - that what I 
want to use is NOT YET an existing thread?


Thanks for any advice and help.

Norbert KLEIN
still quite new on GnuCash
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Re: One account for both Income and Expenses possible?

[Adrien Monteleone]

> On Feb 11, 2018, at 9:57 AM, Robert Heller  wrote:
> 
> At Sun, 11 Feb 2018 15:51:30 +0100 Jeff Abrahamson  wrote:
> 
>> 
>> 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.
> 
> If VAT is anything like Sales Tax, the sales transaction would include all of 
> the pieces as parts of the "split".  This is what I do:
> 
> gross cash/payment in => 1) reduce inventory account by the cost of the goods
> 2) sales tax on the transaction to the sales tax 
>account
> 3) whatever is left over to an income account (this 
>will show up on your P report)
> 
Be sure #2 posts to a "Liability:Sales Tax Payable" (or VAT Payable) account, 
and not a tax expense account.

#3 is not correct, and there are two splits missing.

You should have this for every sale (I’m assuming cash payment, adjust as 
needed):

Dr. Assets:Current Assets:Cash
Dr. Expenses:Cost of Goods Sold
Cr. Liability:Sales Tax Payable
Cr. Income:Sales
Cr. Assets:Current Assets:Inventory

The 1st split is the total amount received as payment.
The 2nd is your #1
The 3rd is your #2
The 4th is 1st split - 3rd split. (the difference between amount received and 
the sales tax, that is, the pre-tax sub-total amount of the actual sale)
The 5th is the same as 2nd (COGS debit and Inventory credit should balance 
between themselves, this could be a separate transaction)

Dealing with a VAT or an otherwise inclusive tax jurisdiction/rule is a little 
messier but similar. (depends on the local laws)

> Yes, the only real gotcha is that vegatables are not durable goods, so you 
> have to account for spoilage somehow.

Very easy:

Expenses:Cost of Goods Sold:Spoilage

Either expense these with a credit against inventory as needed/identified 
(ideally), or periodically with a reconciliation count of inventory.

Regards,
Adrien


> 
> It is possible to group things:
> 
> Assets:Inventory:Vegetables
> Assets:Inventory:Fruits
> Assets:Inventory:Handicrafts
> Assets:Inventory:Meat
> etc.
> (And further subdivide -- Assets:Inventory:Vegetables:Tomatoes, 
> Assets:Inventory:Vegetables:GreenBeans,etc. It would depend on the level of 
> detailneeded and you can generate reports using the accounts at different
> levels, depending on what you need.)
> 
> 
>> 
>> Thanks for explaining clearly!
>> 
> 
> -- 
> Robert Heller -- 978-544-6933
> Deepwoods Software-- Custom Software Services
> http://www.deepsoft.com/  -- Linux Administration Services
> hel...@deepsoft.com   -- Webhosting Services
> 
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Re: One account for both Income and Expenses possible?

[Adrien Monteleone]

Norbert,

If the vegetables, fruits and handicrafts that you buy are purchased for resale 
as your inventory, then yes, you can and should, use one account to track them. 
(not by quantity, but by value)

Because you are also a manufacturer, you might also have a ‘work-in-progress’ 
account at least for the handicrafts. (the produce items would depend on the 
actual work flow from being attached to the plant to being sellable goods, if 
there is an in-between state, you should probably track that) These should all 
be asset accounts. (neither expenses, nor income)

Here’s an example:

Assets:Current Assets:Inventory:Vegetables
Assets:Current Assets:Inventory:Fruits
Assets:Current Assets:Inventory:Handicrafts

--

For products that you have started to make but not finished yet:

Assets:Current Assets:Inventory:Work-In-Progress (again, if more than one type, 
use sub-accounts for better detail)

for the raw materials that go into making the handicrafts until they become 
part of ‘work-in-progress’:

Assets:Current Assets:Inventory:Raw Materials

and possibly also:

Assets:Current Assets:Supplies

--

To track the cost of goods as you sell them (or conduct a periodic inventory) 
you’ll need this account:

Expenses:Cost of Goods Sold

you might also need:

Expenses:Cost of Goods Sold:Spoilage/Damaged
Expenses:Cost of Goods Sold:Samples

and optionally:

Expenses:Cost of Goods Sold:Quality Control

--

When you buy inventory to resell, you will post it to A/P and your line-items 
in your bills should be posted to the appropriate inventory asset account.
When you sell inventory, you post it to A/R and your line-items in your 
invoices should be posted to your respective Income accounts. You might 
breakdown your sales into sub-accounts by category or type of inventory like so:

Income:Sales:Vegetables
Income:Sales:Fruits
Income:Sales:Handicrafts

--

If you are making these buying and selling entries manually instead of using 
the business features, here’s what they should look like:

Sale:
Dr. Assets:Current Assets:Cash
Cr. Income:Sales:Vegetables

Purchase:

Dr. Assets:Current Assets:Inventory:Vegetables
Cr. Assets:Current Assets:Cash

--

If you are running a perpetual inventory system, you would also create a 
transaction for each sale that debited Expenses:Cost of Goods Sold for the 
cost-value of the items on the invoice and credited the respective Inventory 
asset account for those same values. (reducing the asset, and transferring the 
value to an expense)

for example:

Dr. Expenses:Cost of Goods Sold
Cr. Assets:Current Assets:Inventory:Vegetables

--

If you are running a periodic inventory system, you would instead physically 
count inventory at the end of each period. Then you would calculate the basic 
inventory equation:

Starting Inventory + Purchases - Ending Inventory = Cost of Goods Sold

Then make a single transaction debiting the COGS expense account and crediting 
the respective Inventory asset accounts.

Dr. Expenses:Cost of Goods Sold
Cr. Assets:Current Assets:Inventory:Vegetables
Cr. Assets:Current Assets:Inventory:Fruits
Cr. Assets:Current Assets:Inventory:Handicrafts

--

With a perpetual system, you will still likely want to periodically verify your 
inventory, in which case you’d make one-item correcting entries to as with the 
periodic system. You wouldn’t need the starting inventory or purchases amounts, 
just the difference between expected ending inventory and actual, that 
difference would be expensed to an account like this one:

Expenses:Cost of Goods Sold:Shrinkage

This is to account for ‘missing’ inventory where you can’t identify a reason 
for it being missing. (if you knew the reason, you’d likely put it under 
‘spoilage’, ‘samples’ etc.)

--

IF on the other hand, the vegetables, fruits and handicrafts you buy are for 
your OWN use, and not for resale, then NO, you should not lump those together 
with your inventory. Those should be either expensed directly, or held as an 
asset and expensed as you actually use them. (similar to how the inventory/COGS 
accounts work, but not using those exact same accounts since the items aren’t 
part of sales operations)


Regards,
Adrien

> On Feb 10, 2018, at 10:22 PM, Norbert Klein  wrote:
> 
> I am a complete newcomer to GNUcash, using version 2.6.19 on Windows 10.
> 
> My name is Norbert, living in the countryside in Cambodia.
> 
> This is my first posting.
> 
> Apologies for my very simple question. I would appreciate to get help.
> 
> I live on a farm – we produce, sell, and buy vegetables, fruits, and 
> handicrafts.
> 
> When I set up a GNUcash system it created an Expense and an Income section, 
> and under them I created specific accounts and sub-accounts.
> 
> When I now enter something like “Selling vegetables” I can enter the price 
> under “Charge/Income” into Income. - When I enter something 

Re: One account for both Income and Expenses possible?

[Robert Heller]

At Sun, 11 Feb 2018 15:51:30 +0100 Jeff Abrahamson  wrote:

> 
> 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.

If VAT is anything like Sales Tax, the sales transaction would include all of 
the pieces as parts of the "split".  This is what I do:

gross cash/payment in => 1) reduce inventory account by the cost of the goods
 2) sales tax on the transaction to the sales tax 
account
 3) whatever is left over to an income account (this 
will show up on your P report)
 
Yes, the only real gotcha is that vegatables are not durable goods, so you 
have to account for spoilage somehow.

It is possible to group things:

Assets:Inventory:Vegetables
Assets:Inventory:Fruits
Assets:Inventory:Handicrafts
Assets:Inventory:Meat
etc.
(And further subdivide -- Assets:Inventory:Vegetables:Tomatoes, 
Assets:Inventory:Vegetables:GreenBeans,etc. It would depend on the level of 
detailneeded and you can generate reports using the accounts at different
levels, depending on what you need.)


> 
> Thanks for explaining clearly!
> 

-- 
Robert Heller -- 978-544-6933
Deepwoods Software-- Custom Software Services
http://www.deepsoft.com/  -- Linux Administration Services
hel...@deepsoft.com   -- Webhosting Services
   
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Re: One account for both Income and Expenses possible?

[Mike or Penny Novack]

On 2/11/2018 9:03 AM, Robert Heller wrote:

At Sun, 11 Feb 2018 08:15:56 +0100 Jeff Abrahamson  wrote:
... transfer
"money" from the vegetable account to a bank account (income when you sell
vegetables) and when you transfer money from a bank account to the vegetable
account (an expense when you buy vegetables). *I* do this which my inventory
of thumb drives. GnuCash does not have "inventory" accounts or any way of
dealing with inventory as such
Inventory MANAGEMENT is something else (gnucash lacks this but that 
belongs in an inventory system*, not "general ledger".


But you are saying that gnucash does not support inventory value and 
cost accounting and that is simply not so.


Let's say incidental to its main activity an organization sells various 
things (tee shirts, coffee mugs, etc.) as a fund raiser. You create 
under Assets (after "current assets" and "fixed assets") a parent 
"Inventory of goods". Under that might be accounts (more likely also 
parents as batches of goods might have different basis) for "tee 
shirts", "coffee mugs", etc. When the organization buys a new batch of 
tee shirts that is a debit to "tee shirts" (or as I mentioned, perhaps 
"tee shirts batch 4" --- the account description can include what the 
unit price was for this batch) and a credit to checking << note: we get 
confused using the supposedly more user friendly terms worrying about 
what sort of "transfer" this is). Each sale of a tee shirt not only 
debits cash and credits "sale of tee shirts" for the sale price but also 
debits "cost of goods sold" and credits the inventory account "tee 
shirts batch N" for the unit cost of batch N << going to be a policy 
decision whether to simply use FIFO or to actually worry about from 
which batch that shirt came. Maybe BOTH come into play. To use your 
example, thumb drives, you might have 8 Gb drives (batches of those) and 
16 Gb drives (batches of those) so you might want under "thumb drives" 
children "8 Gb drives" and "16 Gb drives" and under each of those "batch 
1, batch2, etc. and use FIFO there >>




Michael D Novack

* The data kept here things like "number on hand", "physical location 
where shelved", "reorder point", etc.

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Re: One account for both Income and Expenses possible?

[Jeff Abrahamson]

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/

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Re: One account for both Income and Expenses possible?

[Jeff Abrahamson]

On 11/02/18 15:03, Robert Heller wrote:
>
> I expect that the OP wants to have an account that represents his stock of
> vegetables (or whatever). He can actually do that. What you do is think of the
> vegetables as a kind of currency or comodity or inventory, that is the
> vegetables themselves are an asset (Assets:vegetables). Then when you sell
> vegetables the vegetable account is redued and when you buy vegetables the
> vegetable account is increased. This happens by transactions which transfer
> "money" from the vegetable account to a bank account (income when you sell
> vegetables) and when you transfer money from a bank account to the vegetable
> account (an expense when you buy vegetables). *I* do this which my inventory
> of thumb drives. GnuCash does not have "inventory" accounts or any way of
> dealing with inventory as such -- the two "features GnuCash lacks are payroll
> and inventory management features. Payroll processing is a huge process (not
> trivial to implement) but inventory management can be "faked" by considering
> inventory as if it were a currency of sorts, by just having an account with a
> balance representing the value of the inventory, which then goes up or down as
> inventory is bought or sold. Since he is a farm, I expect he is growing
> vegetables, so things are slightly more tricky. Maybe it might be useful to
> think of his farm like Bitcoin mining -- maybe someone with that sort of
> experience can describe how to represent a Bitcoin currency and how to
> represent the mining process -- one would do the same with growing vegetables
> somehow.

That is enticing, and I've contemplated doing the same.  But, unlike a
currency, which is a durable form of value that (except for currency
traders) does not constitute P, the vegetables also should show up in
income and expense accounts.  I'd really love to have our inventory show
up in our accounting system, but it's even more important to have our
income and expenses show up, and it seems to be either/or.

buy inventory     bank [cx] -> expense [dx]
(add value)
sell inventory    income [cx] -> bank [dx]

or faking it with currencies

buy inventory     bank [cx] -> inventory [dx]
(add value)
sell inventory    inventory [cx] -> bank [dx]

Except in this second case, only my balance sheet changes, not my P

Did I miss something?

(This is moving away from OP, but a common theme here and one that I'd
like to understand.)

-- 

Jeff Abrahamson
+33 6 24 40 01 57
+44 7920 594 255

http://p27.eu/jeff/

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Re: One account for both Income and Expenses possible?

[Robert Heller]

At  Robert Heller  wrote:

> 
> At Sun, 11 Feb 2018 08:15:56 +0100 Jeff Abrahamson  wrote:
> 
> > 
> > On 11/02/18 05:22, Norbert Klein wrote:
> > > I am a complete newcomer to GNUcash, using version 2.6.19 on Windows 10.
> > >
> > > My name is Norbert, living in the countryside in Cambodia.
> > >
> > > This is my first posting.
> > 
> > Welcome, Norbert.
> > 
> > 
> > > I live on a farm =96 we produce, sell, and buy vegetables, fruits, and
> > > handicrafts.
> > >
> > > [...]
> > > When I now enter something like =93Selling vegetables=94 I can enter the
> > > price under =93Charge/Income=94 into Income. - When I enter something like
> > > =93Buying vegetables=94 I can enter the income under =93Expense/Rebate=94=
> >  into
> > > Expenses (and as a double-entry to Cash, increasing or decreasing).
> > >
> > > [...]
> > >
> > > But could I instead set up an account =93Vegetables=94 where I can enter
> > > both BOUGHT Vegetables and SOLD Vegetables? (same for fruits and
> > > handicrafts)
> > 
> > It depends what you want to do.
> > 
> > When you sell vegetables, you are making a transfer from an income
> > account to (probably) a cash or bank account.
> > When you buy vegetables, you are making a transfer from a cash/bank
> > account to an expense account.
> > 
> > So that cash/bank account is a common account where you see both.=A0 If
> > your goal is ease of entry, for example, that one account is the place
> > to do it.
> > 
> > Alternatively, you can construct reports where you see only vegetable
> > income and expense transactions (if you have dedicated expense and
> > income accounts for vegetables).=A0 I'm a bit new to gnucash, and I
> > haven't fully explored the report functions.=A0 But an appropriately
> > filtered income/expense report should be possible.
> > 
> > But maybe that's not what mean.=A0 Maybe you can let us know what need you
> > want to satisfy this way.
> 
> I expect that the OP wants to have an account that represents his stock of
> vegetables (or whatever). He can actually do that. What you do is think of the
> vegetables as a kind of currency or comodity or inventory, that is the
> vegetables themselves are an asset (Assets:vegetables). Then when you sell
> vegetables the vegetable account is redued and when you buy vegetables the
> vegetable account is increased. This happens by transactions which transfer
> "money" from the vegetable account to a bank account (income when you sell
> vegetables) and when you transfer money from a bank account to the vegetable
> account (an expense when you buy vegetables). *I* do this which my inventory
> of thumb drives. GnuCash does not have "inventory" accounts or any way of
> dealing with inventory as such -- the two "features GnuCash lacks are payroll
> and inventory management features. Payroll processing is a huge process (not
> trivial to implement) but inventory management can be "faked" by considering
> inventory as if it were a currency of sorts, by just having an account with a
> balance representing the value of the inventory, which then goes up or down as
> inventory is bought or sold. Since he is a farm, I expect he is growing
> vegetables, so things are slightly more tricky. Maybe it might be useful to
> think of his farm like Bitcoin mining -- maybe someone with that sort of
> experience can describe how to represent a Bitcoin currency and how to
> represent the mining process -- one would do the same with growing vegetables
> somehow.

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).

> 
> > 
> > -- =
> > 
> > 
> > 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 

Re: One account for both Income and Expenses possible?

[Robert Heller]

At Sun, 11 Feb 2018 08:15:56 +0100 Jeff Abrahamson  wrote:

> 
> On 11/02/18 05:22, Norbert Klein wrote:
> > I am a complete newcomer to GNUcash, using version 2.6.19 on Windows 10.
> >
> > My name is Norbert, living in the countryside in Cambodia.
> >
> > This is my first posting.
> 
> Welcome, Norbert.
> 
> 
> > I live on a farm =96 we produce, sell, and buy vegetables, fruits, and
> > handicrafts.
> >
> > [...]
> > When I now enter something like =93Selling vegetables=94 I can enter the
> > price under =93Charge/Income=94 into Income. - When I enter something like
> > =93Buying vegetables=94 I can enter the income under =93Expense/Rebate=94=
>  into
> > Expenses (and as a double-entry to Cash, increasing or decreasing).
> >
> > [...]
> >
> > But could I instead set up an account =93Vegetables=94 where I can enter
> > both BOUGHT Vegetables and SOLD Vegetables? (same for fruits and
> > handicrafts)
> 
> It depends what you want to do.
> 
> When you sell vegetables, you are making a transfer from an income
> account to (probably) a cash or bank account.
> When you buy vegetables, you are making a transfer from a cash/bank
> account to an expense account.
> 
> So that cash/bank account is a common account where you see both.=A0 If
> your goal is ease of entry, for example, that one account is the place
> to do it.
> 
> Alternatively, you can construct reports where you see only vegetable
> income and expense transactions (if you have dedicated expense and
> income accounts for vegetables).=A0 I'm a bit new to gnucash, and I
> haven't fully explored the report functions.=A0 But an appropriately
> filtered income/expense report should be possible.
> 
> But maybe that's not what mean.=A0 Maybe you can let us know what need you
> want to satisfy this way.

I expect that the OP wants to have an account that represents his stock of
vegetables (or whatever). He can actually do that. What you do is think of the
vegetables as a kind of currency or comodity or inventory, that is the
vegetables themselves are an asset (Assets:vegetables). Then when you sell
vegetables the vegetable account is redued and when you buy vegetables the
vegetable account is increased. This happens by transactions which transfer
"money" from the vegetable account to a bank account (income when you sell
vegetables) and when you transfer money from a bank account to the vegetable
account (an expense when you buy vegetables). *I* do this which my inventory
of thumb drives. GnuCash does not have "inventory" accounts or any way of
dealing with inventory as such -- the two "features GnuCash lacks are payroll
and inventory management features. Payroll processing is a huge process (not
trivial to implement) but inventory management can be "faked" by considering
inventory as if it were a currency of sorts, by just having an account with a
balance representing the value of the inventory, which then goes up or down as
inventory is bought or sold. Since he is a farm, I expect he is growing
vegetables, so things are slightly more tricky. Maybe it might be useful to
think of his farm like Bitcoin mining -- maybe someone with that sort of
experience can describe how to represent a Bitcoin currency and how to
represent the mining process -- one would do the same with growing vegetables
somehow.

> 
> -- =
> 
> 
> 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.
> 
> 
> 

-- 
Robert Heller -- 978-544-6933
Deepwoods Software-- Custom Software Services
http://www.deepsoft.com/  -- Linux Administration Services
hel...@deepsoft.com   -- Webhosting Services
  
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Re: One account for both Income and Expenses possible?

[Maf. King]

On Sunday, 11 February 2018 04:22:43 GMT Norbert Klein wrote:
> I am a complete newcomer to GNUcash, using version 2.6.19 on Windows 10.
> 
> My name is Norbert, living in the countryside in Cambodia.
> 
> This is my first posting.
> 
> Apologies for my very simple question. I would appreciate to get help.
> 
> I live on a farm – we produce, sell, and buy vegetables, fruits, and
> handicrafts.
> 
> When I set up a GNUcash system it created an Expense and an Income
> section, and under them I created specific accounts and sub-accounts.
> 
> When I now enter something like “Selling vegetables” I can enter the
> price under “Charge/Income” into Income. - When I enter something like
> “Buying vegetables” I can enter the income under “Expense/Rebate” into
> Expenses (and as a double-entry to Cash, increasing or decreasing).
> 
> The same for fruits, and for handicrafts.
> 
> But could I instead set up an account “Vegetables” where I can enter
> both BOUGHT Vegetables and SOLD Vegetables? (same for fruits and
> handicrafts)
> 
> When I tried to create such an account, I can select only ONE Account
> Type: Expense or Income.
> 
> Please kindly advise.
> 
> 
> Norbert
> 

Hi Norbert.

Welcome to the list.

Let me start by saying that you should have started a new thread for your 
question and not hijacked the existing thread, which is about something 
completely different.  It would have made your question easier to find if 
anyone else ever has the same question in the future.

You can do what you want, but I think it would be a bad idea.

If you have an account Income:Vegetables, you can record expenses to that 
account, effectively it would be "negative income" though.

The reason I think it would be a bad idea is that it would make it very hard 
to see how much you have spent (or earned) in total on vegetables, or to 
compare year to year totals etc.  

If this is a business that would need to fill in tax forms for the government, 
then what you suggest would certainly not be approved by the tax people, and 
might even be illegal depending on your local rules (you'd have to ask a local 
accountant about your local rules).

HTH,
Maf.
 

-- 
Maf. King
PGP Key fingerprint = 8D68 A91F 733B 2C1F 43B7  2B7C E591 E8E1 0DE7 C542



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Re: One account for both Income and Expenses possible?

[Jeff Abrahamson]

On 11/02/18 05:22, Norbert Klein wrote:
> I am a complete newcomer to GNUcash, using version 2.6.19 on Windows 10.
>
> My name is Norbert, living in the countryside in Cambodia.
>
> This is my first posting.

Welcome, Norbert.


> I live on a farm – we produce, sell, and buy vegetables, fruits, and
> handicrafts.
>
> [...]
> When I now enter something like “Selling vegetables” I can enter the
> price under “Charge/Income” into Income. - When I enter something like
> “Buying vegetables” I can enter the income under “Expense/Rebate” into
> Expenses (and as a double-entry to Cash, increasing or decreasing).
>
> [...]
>
> But could I instead set up an account “Vegetables” where I can enter
> both BOUGHT Vegetables and SOLD Vegetables? (same for fruits and
> handicrafts)

It depends what you want to do.

When you sell vegetables, you are making a transfer from an income
account to (probably) a cash or bank account.
When you buy vegetables, you are making a transfer from a cash/bank
account to an expense account.

So that cash/bank account is a common account where you see both.  If
your goal is ease of entry, for example, that one account is the place
to do it.

Alternatively, you can construct reports where you see only vegetable
income and expense transactions (if you have dedicated expense and
income accounts for vegetables).  I'm a bit new to gnucash, and I
haven't fully explored the report functions.  But an appropriately
filtered income/expense report should be possible.

But maybe that's not what mean.  Maybe you can let us know what need you
want to satisfy this way.

-- 

Jeff Abrahamson
+33 6 24 40 01 57
+44 7920 594 255

http://p27.eu/jeff/


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