On Fri, 9 Dec 2022 at 20:20, <list+gnuc...@jdlh.com> wrote: > Hello, David: > > I have the same kind of transactions in my small business bookkeeping as > you describe here. My responses are interleaved below.
I think most businesses will use PayPal at some point. > > > *If I were NOT using PayPal, this is the process I would go through.* > > > > *Under Business -> Vendor -> New Bill* > > Create a bill and post that to these accounts > > *Expense Account:* Expenses -> Utilities -> Internet > > *Post to Account: * Liabilities -> Accounts Payable -> GBP > > > > *Under Business -> Vendor -> Process Payment* > > Process the payment > > *, using these accounts* > > *Post to*: Liabilities -> Accounts Payable -> GBP > > *Transfer Account:* Assets -> Bank account > > > > Am I doing that all correctly done, if not using PayPal ? > > I do not use the Business -> Vendor features to handle such > transactions, even for business expenses. If the funds are leaving my > possession as part of the payment, I do not see a reason to involve > Accounts Payable. I can understand that. But I asked another question the other day, and was told that vendor reports (or similar wording / implications) we possible if one went via Accounts Payable. Can you generate reports for specific vendors with your system? So I follow this process: > > Create a simple transaction with these accounts > *Asset Account:* Assets -> Bank account > *Other Account:* Expenses -> Utilities -> Internet > > > ...how can I modify the process so the account* Assets -> > > PayPal -> GBP* account gets used? > If I am using Paypal, which keeps a zero balance, then as soon as I pay > for something with Paypal, Paypal funds that amount by charging my bank > account (or credit card, sometimes). I follow a process with two simple > transactions: I like to keep a zero PayPal balance, but find it’s not always possible. Also, if one buys and sells multiple currencies, as I do, it saves on currency conversion fees if one keeps USD and GBP separately. > > *Asset Account:* Assets -> Paypal account -> GBP > *Expense Account:* Expenses -> Utilities -> Internet > > *Asset Account:* Assets -> Paypal account -> GBP > *Other Account:* Assets -> Bank account > > This means that the expense is recorded in the Expense Account, the > Paypal ledger has two matching transactions to reconcile against my > Paypal statement, and the Bank account ledger has a single transaction > to reconcile against the Bank statement. I have not tried reconciling PayPal yet. That looks to be tricky, as you can not go back and see the balance at some time in the past. I would be interested to hear from others about this. I would rather not put two entirely separate transactions - I thought splits was a way around that, but I might be wrong. > > > Hope this helps! Yes, it does. If nobody else comes up with another way, I will do two transactions like you. > > > —Jim DeLaHunt > > > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > -- Dr. David Kirkby, Kirkby Microwave Ltd, drkir...@kirkbymicrowave.co.uk https://www.kirkbymicrowave.co.uk/ Telephone 01621-680100./ +44 1621 680100 Registered in England & Wales, company number 08914892. Registered office: Stokes Hall Lodge, Burnham Rd, Althorne, Chelmsford, Essex, CM3 6DT, United Kingdom _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.