In the end, monies is what is “float”. That is what I remember from finance course number of decades ago; it is more of money function rather than time function.
Anyways, I also have pondered with that “delay” between when one has “started” the transaction and when one has “completed” the transaction. The way I am dealing with it is to denote the transaction on the day I actually made it and then when reconciling it update the date as it appears on financial institution side. If one really wants to account for it then there would be an intermediary “floats” account to which you would post the transaction when “started” and then when it “completes”, another transaction would be posted from that “floats” account into the final account. This “floats” account would always be running close to zero unless a check sent that has never been cashed which would show up here. I would think that this “floats” would be a liability account… From: R Losey <rlo...@gmail.com> Sent: Tuesday, April 09, 2024 12:44 PM To: Kalpesh Patel <kalpesh.pa...@usa.net> Cc: gnucash-user@gnucash.org Subject: Re: [GNC] Recording transactions (date) I thought "floating a check" means that one issues a check, knowing that there isn't money to cover it, but planning to deposit funds before the check is presented for cashing. But perhaps you mean "float time" -- that may well be the correct term. I was just interested in knowing what people here (many of whom have a closer acquantaintence with accounting than I do) thought about using the actual date of the transaction versus using the cleared date of the transaction. Clearly, the "cleared" date is when the money actually transfers, but (to my mind), one doesn't have an accurate picture of one's finances if there is pending money to be removed from an account. On Tue, Apr 9, 2024 at 7:26 AM Kalpesh Patel <kalpesh.pa...@usa.net <mailto:kalpesh.pa...@usa.net> > wrote: In the states, isn't that what is called "floats"? -----Original Message----- From: Liz <ed...@billiau.net <mailto:ed...@billiau.net> > Sent: Monday, April 08, 2024 6:50 PM To: gnucash-user@gnucash.org <mailto:gnucash-user@gnucash.org> Subject: Re: [GNC] Recording transactions (date) On Mon, 8 Apr 2024 17:11:37 -0500 R Losey <rlo...@gmail.com <mailto:rlo...@gmail.com> > wrote: > Since I first learned about recording transactions, I have always > dated a transaction on the date I wrote the check; similarly, when > entering credit card transactions, I use the date that I actually > used the credit card. > > Recently, however, I was having a discussion with a friend and he > said that he uses the bank or credit card date of entry for all of > his transactions. > > I thought this was strange - probably because it is different from the > method I've used all of my life. Perhaps I am the odd one... or > perhaps it's merely a matter of choice, so I thought I'd bring it up > to this list to see what people think about it. > > From (a very brief) research about this topic, perhaps this is the > difference between cash basis accounting and accrual accounting? > > > After thinking about it for a bit, one issue with using the date that > the transactions occur is the reports, especially if one has repeating > transactions. For example, if the satellite service bill is paid each > month on the 28th, using my method, I record a transaction on the > 28th. My friend will see it on the 29th or 30th, but if the weekend > or holiday hits just right, it can be the 1st or 2nd before he sees > it. In the long run everything should be the same, but the monthly > sub-totals can look odd. Checks can be even worse... someone may hang > onto one for weeks. > > I'd appreciate thoughts on the topic. I think it is a philosophical difference. There are legal ramifications, especially when you are spending money. If you future date transactions you may spend money you don't actually have. In my jurisdiction a business doing this is in big trouble, for "trading while insolvent". It is not the difference between cash and accrual accounting, but is part of the differences. Liz _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org <mailto: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. -- _________________________________ Richard Losey rlo...@gmail.com <mailto:rlo...@gmail.com> Micah 6:8 _______________________________________________ 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.