On 08/06/2018 02:27 PM, Adrien Monteleone wrote: > Certainly, if you have a card tied to the account and you are charged for > each purchase on the spot, then no need for the mess I described. > > When you purchase: > > Dr. Expenses:Entertainment (software, whatever) > Cr. Credit Card (the one that will be charged) > > Use ‘Google Play’ as the Description for the transaction and the actual title > purchased as either the Note or the Memo on the expense split. > > When entering expenses, I generally use the Description field for the > ‘Vendor’ being paid. (who I purchased from) > > Otherwise, when you pay the credit card bill, that’s like any other > situation, as Google Play is no longer part of the equation as Stephen noted. > > Regards, > Adrien
That's the "fun" side of accounting. So many ways to do the same thing. Only your CPA knows for sure how you should do it -- and that's because it will be how s/he wants it done. > >> On Aug 6, 2018, at 4:20 PM, Stephen M. Butler <kg...@arrl.net> wrote: >> >> On 08/06/2018 01:59 PM, Baldero Mendoza wrote: >>> Please be patient with me - brand new to this. >>> >>> Household financial stuff. I want to post a "google play" purchase. >>> Should I post as an expense or a liability? >>> >>> I have accounts open for things like "electricity" and that seems to >>> work just fine, but "google play" looks like it works sort of like a >>> credit card, so I listed it under "liabilities", and that seems to >>> work too. I made the connected account "checking" and it all seems to >>> balance and work. >>> >>> However, what bothers me is that the "google play" entry under >>> "liabilities" is listed as a red negative number. So I have two red >>> negative numbers listed now, one under "liabilities" and one under >>> "google play". Everything balances, so is it okay or should I place >>> "google play" purchases as "expenses"? (I just started gnucash so >>> there aren't any credit card or debit card purchases yet.) The >>> "expenses" stuff gets listed as black positive numbers even though >>> they're an outflow of money just like the "google play" stuff under >>> "liabilities". Maybe it's optional and can be done either way? >>> Confusing. >>> >>> Thank you everybody! >>> _______________________________________________ >> All of us were brand new at one point. I'm not much past that stage >> either. >> >> I'm not a CPA nor a book-keeper (though am married to an accountant and >> have written accounting software), so this is just my opinion. >> >> 1. I would make an expense category for "Software" rather than tying it >> to "Google Play" -- but that's just my approach. Would make it an >> expense though. >> >> 2. The Google Play items (at least some of mine) get charged off to >> your credit card. That would be a Liability account (short-term). >> >> 3. So, the two sides for the transaction (purchase) would be the >> expense (Software or Google Play) and CreditCardClearingAccount (Liability). >> >> 4. When you pay off the credit card, the transaction would be the >> CreditCardClearingAccount (to reduce toward zero) and the Checking >> Account (Asset) from which the payment was made. >> >> Hope this helps clarify your thinking. >> -- >> Stephen M Butler, PMP, PSM >> stephen.m.butle...@gmail.com >> kg...@arrl.net >> 253-350-0166 >> ------------------------------------------- >> GnuPG Fingerprint: 8A25 9726 D439 758D D846 E5D4 282A 5477 0385 81D8 _______________________________________________ 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.