On Tue, Mar 10, 2015 at 11:41 AM, Rick F <[email protected]> wrote:
> I'm not an accountant, but the general format for a ledger is usually
> Assets, Liabilities, Equity, Income and Expenses.  Customer invoices would
> typically be under Assets:Accounts Receivable and supplier invoices would be
> under Liabilities:Accounts Payable.
>
> Assuming you're using ledger for a U.S. business, take a look at Schedule C,
> since that's likely what you're going to have to fill out on a regular basis
> from your ledger.  My expense categories, for example, match the categories
> on lines 18-27.  My revenue categories come from lines 1-4.

I endorse this method as well - makes tax time much easier.

As a structure, I have a top level "BusinessName" category for the
business, as well as top level "Customers" and "Suppliers" categories.

Someone paying for work performed service would look like this:

2015-01-01 Fixed Widget
 BusinessName:Assets:AccountsReceivable:Labor  $100
 Customers:CustomerName:AccountsPayable  -$100

Them paying the bill would look like this - it's a 4-part transaction
so that everything balances on both ends - I wrote about this
"Transfer pattern" from a while ago:
https://groups.google.com/d/msg/ledger-cli/K7EgJQuEQ_M/WGzdFhtuqwIJ

2015-01-02 Payment for Work Performed, Check #1234
 BusinessName:Transfer:ChecksUncashed  $100
 BusinessName:Assets:AccountsReceivable:Labor  -$100
 Customers:CustomerName:Equity  -$100
 Customers:CustomerName:AccountsPayable $100

Then when the check gets deposited:

2015-01-03 Deposit to Checking
 BusinessName:Assets:CheckingAccount  $100
 BusinessName:Transfer:ChecksUncashed  -$100

This way, at the end, the customer's balance should be zero, and you
can reconcile your deposits easily.

> Making each individual invoice its own account is very GnuCash, but I prefer
> to keep my account hierarchy pretty clean and instead use tags to keep track
> of individual invoices.  I think it makes closing out the books at the end
> of the year simpler.  I'm not going to say everyone agrees with me on that
> one, though.

I agree with this.  You end up with account overload, and have
problems if someone makes a payment for multiple transactions with one
transaction.

- Zack

-- 

--- 
You received this message because you are subscribed to the Google Groups 
"Ledger" group.
To unsubscribe from this group and stop receiving emails from it, send an email 
to [email protected].
For more options, visit https://groups.google.com/d/optout.

Reply via email to