Hi Richard. Why should my "Shipping costs" account have a "rebate" value of 50 (using your numbers)? I don't think it should be a rebate: instead it looks to me that it should be an expense. The "shipping costs" account is an expense type of account, therefore I think that I spent 50 Euros for shipping and this has to increase the "shipping costs". With a rebate, it decreases them...
F. https://www.instagram.com/boniforti_music https://soundcloud.com/boniforti_music https://bonny-j.bandcamp.com Am Sa., 23. Nov. 2024 um 14:48 Uhr schrieb R Losey <[email protected]>: > Ah, well, that makes it simpler. How about something like the following? > (I'm going to make up numbers instead of using yours). > > Your instrument: 800 > Sold for 1000 > Shipping is 50 > Thus, buyer sends you a check for 1050 > You write a check for 50 to SHIPPER to pay for shipping > > I would enter these as two transactions - the sale and the shipping > payment. > > Transaction 1: > Increase the bank account by 1050 (a "Deposit") > decrease your instrument value by 800 > your income from the sale increases by 200 > the remaining 50 should go into shipping expenses (as a "Rebate") > > Transaction 2: > Decrease the bank account by 50 > Shipping expense should have an Expense of 50 > > > Because the buyer is paying shipping, you don't really have any shipping > expenses, but the way above, everything is recorded for future reference, > if need be. The shipping expense account will show both an increase of 50 > that the buyer paid in, and the decrease when the shipping was paid. > > How does that sound? > > > > On Sat, Nov 23, 2024 at 6:59 AM Boniforti Flavio <[email protected]> > wrote: > >> Hi Richard. >> It's one payment I got from the buyer, which includes both the value of >> the goods and the shipping costs. >> F. >> >> https://www.instagram.com/boniforti_music >> https://soundcloud.com/boniforti_music >> https://bonny-j.bandcamp.com >> >> >> Am Fr., 22. Nov. 2024 um 18:10 Uhr schrieb R Losey <[email protected]>: >> >>> Hi. Your statement that "shipping is... paid by me, but the buyer is >>> giving me the money for the shipping" is a contradiction. If the buyer is >>> providing the funds, he is paying the shipping, not you. How you would >>> record this depends partly on preference and partly how this is done... is >>> the shipping included in the total sent to you? Is it a separate payment? >>> If it is part of the same "transaction", I would use one entry, but if he >>> gives you money at two different times or in two different ways, I would >>> use two transactions. >>> >>> >>> On Fri, Nov 22, 2024 at 2:15 AM Boniforti Flavio <[email protected]> >>> wrote: >>> >>>> Hi David. >>>> Shipping is factually paid by me with my money, but the buyer is giving >>>> me >>>> the money for the shipping. So do I understand it right that I could >>>> separate this sale and just enter two transactions in my checking >>>> account? >>>> One would be the shipping costs, the other is the rest from 1214 EUR? I >>>> then would have two different "sources of money" for both zeroing the >>>> "Korg >>>> MS-20M" account and for the "shipping costs of sales" account. Could >>>> this >>>> work? >>>> >>>> F. >>>> >>>> https://www.instagram.com/boniforti_music >>>> https://soundcloud.com/boniforti_music >>>> https://bonny-j.bandcamp.com >>>> >>>> >>>> Am Fr., 22. Nov. 2024 um 04:57 Uhr schrieb David Cousens < >>>> [email protected]>: >>>> >>>> > It all depends on whether the buyer or seller is paying the shipping >>>> > costs. >>>> > >>>> > If the seller is paying the shipping costs then it is an expense to >>>> the >>>> > seller but in this case the shipping costs are not explicitly included >>>> > in the purchase price and would be paid. >>>> > >>>> > For a business this could be recorded as >>>> > >>>> > >>>> > Asset:Mus. Inst. Cr 800.00 >>>> > Expenses:CoGS Dr 800.00 >>>> > Asset:Bank Account Dr 1241.00 >>>> > Income:Sales Mus Inst Cr 1241.00 >>>> > >>>> > when the funds are received >>>> > >>>> > Asset:Bank account Cr 35.49 >>>> > Expense:Shipping Dr 35.49 >>>> > >>>> > when shipping is paid (these could be combined if simultaneous but >>>> > ideally better to keep the splits with memo annotations) >>>> > >>>> > and the nett profit on the sale is 1241-800-35.49 = 405.51 >>>> > >>>> > If the buyer is paying the shipping costs, then the purchase price >>>> > should have included the shipping over and above the sale price of the >>>> > instrument itself and the seller cannot claim the shipping as an >>>> > expense and part of the money received pays for the shipping. >>>> > >>>> > For this case it could be recorded as >>>> > >>>> > Asset Bank Dr 1178.51 >>>> > Asset:Mus. Inst. Cr 800.00 >>>> > Expenses:CoGS Dr 800.00 >>>> > Income:Sales Cr 1178.51 >>>> > >>>> > Asset:Bank Dr 35.49 >>>> > Liability:Shipping Cr 35.49 >>>> > >>>> > when the funds are received >>>> > >>>> > and when the shipping is paid >>>> > >>>> > Asset:Bank Cr 35.49 >>>> > Liability:Shipping Dr 35.49 >>>> > >>>> > and in this case the net profit is 1178.51-800 = 478.51 >>>> > >>>> > Which of these it is appropriate should be clear from the sales >>>> > invoice. >>>> > >>>> > David Cousens >>>> > >>>> > On Thu, 2024-11-21 at 20:52 -0600, R Losey wrote: >>>> > > Expense accounts, because they are usually only increased, just have >>>> > > Expenses for debits. The credit is called a "Rebate". I don't know >>>> if >>>> > > you >>>> > > meant to make that account an expense account. >>>> > > >>>> > > I don't see an Income anywhere in the list. >>>> > > >>>> > > Your asset should have gone down by 800 EUR, as you did. The gain in >>>> > > this >>>> > > sale is 414 EUR, of which the shipping should be an expense, and the >>>> > > Income >>>> > > will be 1214 minus the shipping cost, right? >>>> > > >>>> > > >>>> > > On Thu, Nov 21, 2024 at 3:53 PM Boniforti Flavio >>>> > > <[email protected]> >>>> > > wrote: >>>> > > >>>> > > > Hi all. >>>> > > > >>>> > > > I've just sold one of my instruments, for which I already have a >>>> > > > dedicated >>>> > > > account "Assets:Current Assets:Music Equipment EUR:Korg MS-20M". >>>> > > > The opening balance for this item is 800 EUR. >>>> > > > I now sold it and I got 1214 EUR for it. So I entered 1214 in the >>>> > > > "Total >>>> > > > Increase" column, with "Transfer" my EUR Checking account. Then I >>>> > > > added >>>> > > > splits: >>>> > > > 800 "Total decrease" so that the item's value is 0 (as I sold it, >>>> I >>>> > > > don't >>>> > > > have anymore its value at home) - Transfer = "Korg MS-20M" >>>> account; >>>> > > > 378,51 "Total decrease" (which is the surplus I made) - Transfer = >>>> > > > "Income:Music Equipment Sold EUR" >>>> > > > 35,49 "Total decrease", the price I paid for shipping this item to >>>> > > > the >>>> > > > seller - Transfer = "Expenses EUR:Post:Shipping cost of sales" >>>> > > > >>>> > > > Now when I look at the last account listed, I see 35,49 in the >>>> > > > "Rebate" >>>> > > > column and the "Expense" column is empty - which in the end >>>> results >>>> > > > in a >>>> > > > negative total: >>>> > > > [image: image.png] >>>> > > > What am I doing wrong? >>>> > > > >>>> > > > Thanks, >>>> > > > Flavio. >>>> > > > >>>> > > > https://www.instagram.com/boniforti_music >>>> > > > https://soundcloud.com/boniforti_music >>>> > > > https://bonny-j.bandcamp.com >>>> > > > _______________________________________________ >>>> > > > gnucash-user mailing list >>>> > > > [email protected] >>>> > > > 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. >>>> > > > >>>> > > >>>> > > >>>> > >>>> > _______________________________________________ >>>> > gnucash-user mailing list >>>> > [email protected] >>>> > 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. >>>> > >>>> _______________________________________________ >>>> gnucash-user mailing list >>>> [email protected] >>>> 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 >>> [email protected] >>> Micah 6:8 >>> >> > > -- > _________________________________ > Richard Losey > [email protected] > Micah 6:8 > _______________________________________________ gnucash-user mailing list [email protected] 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. 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