Re: Integrating Profit and Loss Report into a set of books and the trial balance
On 07/03/2018 23:14, Stan Brown wrote: On Wed, Mar 7, 2018, at 10:56 AM, John Wilson wrote: Stan, Thank you for your prompt help. Attached is my first P&L statement which shows an income of $1,458.23 but when I run a trial balance it does not appear in Earnings, which Equity:Earnings account that I set up. Correct. The Trial Balance shows every account, so they will always be balanced and therefore everything on there is a real account. I was talking about the Balance Sheet. the Balance Sheet shows all asset, liability, and equity accounts, but it does not show revenue and expense accounts. Instead, it shows the aggregate of all revenues minus all expenses (which of course is net income) as an equity item, and calls it Retained Earnings. This is not an account (even if you have an account by that name), just a line item on the Balance Sheet that aggregates all accounts in the income and expense categories. Have you looked at the eguile BS ? :) It sounds to me like you are saying stuff without knowing much about gnc, Stan Brown. [snip] I would welcome your opinion You just picked a report different from the one I was talking about. It's not hard to do -- there are many reports and many have similar names. said the man that didn't spot what the eguile balance sheet shows. -- Wm ___ 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.
Re: Integrating Profit and Loss Report into a set of books and the trial balance
On 06/03/2018 15:13, jcnw wrote: I am setting up a set of books for a small church and need to run a month profit and loss report. How do I enter the Net Income for the Period into the books so it shows up in the balance sheet? I have set up the books with Income, Expense, Asset and Liability accounts. Do I need to set up a P&L account. Thanks for help and consideration John You've had two answers presenting different philosophies. I suggest not closing the book ever. If you want to do it as a test, copy the file and see what happens, it just creates an entry that you can delete later so isn't really significant unless you want to be old school. Now for my attempt at an answer. Presuming your church (and this probably applies to most charitable organisations regardless of religion and hopefully not abusing people in the third world or obeying the idiot Trump) isn't about maximising profits you want three basic reports. Reports / Inc & Exp / Equity Statement it tells you where you are and where you were before. Play with the dates so they match what your god(s) expect :) Reports / Assets & Liabilities / Balance Sheet [1] you want at least two of these, one at the start of the period and one at the end. Sometimes it is good to offer a third BS dated "today" if things have changed significantly since the end of the period you were asked to report on. [1] which balance sheet you use is dependant on your audience, the easier to understand one is just called Balance Sheet, the more interesting one is the eguile one but it has been known to confuse folk as it is a non-traditional BS. Reports / Income & Expense / Income Statement To tidy things up you want an Income Statement (or a P&L, same thing in gnc but IS probably makes more sense for a church) use the same dates as for the Equity Statement and the start and end balance sheets, this is so people can see why and what changed. In plain terms people usually want to know: where were we then where are we now what happened in between and does it all add up and match what was expected If you are able to report honestly on those things you'll do your community a good service. Best wishes. -- Wm ___ 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.
Re: Integrating Profit and Loss Report into a set of books and the trial balance
On Wed, Mar 7, 2018, at 10:56 AM, John Wilson wrote: > Stan, > Thank you for your prompt help. > Attached is my first P&L statement which shows an income of $1,458.23 > but when I run a trial balance it does not appear in Earnings, which > Equity:Earnings account that I set up. Correct. The Trial Balance shows every account, so they will always be balanced and therefore everything on there is a real account. I was talking about the Balance Sheet. the Balance Sheet shows all asset, liability, and equity accounts, but it does not show revenue and expense accounts. Instead, it shows the aggregate of all revenues minus all expenses (which of course is net income) as an equity item, and calls it Retained Earnings. This is not an account (even if you have an account by that name), just a line item on the Balance Sheet that aggregates all accounts in the income and expense categories. > Do I have to actually close my accounts monthly to get the Earnings to > appear? No. > Or have I set up the accounts wrongly? Also No, at last at first glance. > I found this on-line: > http://www.austintek.com/gnucash/ncsa-gnucash-talk-4.html#ss4.7 where > the owners capital is set up as a liability. > Should I have set up the opening balances not as an equity account but > as a liability account for GnuCash to work. In heaven's name, no. :-) > I would welcome your opinion You just picked a report different from the one I was talking about. It's not hard to do -- there are many reports and many have similar names. > Regards, > John > > Dr. John Wilson & Dr. Diane Martin, > 3770 San Mateo Drive > Port Alberni, B.C., V9Y 5H4 > Phone: 250-723-3752 -- Stan Brown the_stan_br...@fastmail.fm http://BrownMath.com http://OakRoadSystems.com/ ___ 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.
Re: Integrating Profit and Loss Report into a set of books and the trial balance
On 3/6/2018 10:13 AM, jcnw wrote: I am setting up a set of books for a small church and need to run a month profit and loss report. How do I enter the Net Income for the Period into the books so it shows up in the balance sheet? I have set up the books with Income, Expense, Asset and Liability accounts. Do I need to set up a P&L account. Thanks for help and consideration John Ah, somebody who learned in the old days. No, you don't have to set up a P&L account, close the income and expense accounts to it, and close it to main equity. Just run the "Income Statement" (aka "Profit and Loss Report" aka "Statement of Revenues and Expenses" -- which is what a non-profit would call it) for the time interval and "Balance Sheet" reports for the beginning and end (next period just the end as you will have the before from last time). You CAN "close the books" but you don't have to. Michael D Novack ___ 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.
Re: Integrating Profit and Loss Report into a set of books and the trial balance
You don’t enter Net Income directly. You enter all of the revenue transactions and all of the expense transactions. Gnucash does the math when you run the P&L (Income Statement) Report. Regards, Adrien > On Mar 6, 2018, at 9:13 AM, jcnw wrote: > > I am setting up a set of books for a small church and need to run a month > profit and loss report. > How do I enter the Net Income for the Period into the books so it shows up > in the balance sheet? > I have set up the books with Income, Expense, Asset and Liability accounts. > Do I need to set up a P&L account. > Thanks for help and consideration > John > > > > -- > Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html > ___ > 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. ___ 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.
Re: Integrating Profit and Loss Report into a set of books and the trial balance
> On Mar 6, 2018, at 11:11 AM, Stan Brown wrote: > > On Tue, Mar 6, 2018, at 10:13 AM, jcnw wrote: >> I am setting up a set of books for a small church and need to run a month >> profit and loss report. >> How do I enter the Net Income for the Period into the books so it shows up >> in the balance sheet? >> I have set up the books with Income, Expense, Asset and Liability accounts. >> Do I need to set up a P&L account. >> Thanks for help and consideration >> John > > > Closing the books will do that. > > But you may not want to close the books monthly. Instead you may want to run > an income statement for each month, and not close the books till the end of > the year. > > The tutorial concepts guide has more about this. It caused me to change my > accounting period from a month to a year, and specify start and end dates for > each month's income statement. > > When you run a balance sheet as of a particular date, the total of income > minus expenses is automatically placed on the balance sheet, in a category > called retained earnings, so you don't have to do anything to compute it. > > However, the Retained Earnings in the balance sheet does not pay attention to > the accounting period. Say your accounting period is monthly and you close > the books at the end of the year (as I do). When you run a balance sheet as > of 31 January, the Retained Earnings figure shown is of course the net income > for January. But when you run a balance sheet as of 28 February, Retained > earnings is the total of the two months January and February, in a single > number. In other words, Retained Earnings is always the total of income minus > expenses since the last time you closed the books. Which brings up a use case for never running ‘close book.’ If you never close, it doesn’t matter what date the Balance Sheet is run for, it will always present the proper Retained Earnings calculation as of that date. Regards, Adrien > > > By contrast, the income statement does respect the dates you set on Edit » > Report Options. (I think that's the right menu option; I don't have the > software on this computer.) > > -- > Stan Brown > the_stan_br...@fastmail.fm > http://BrownMath.com > http://OakRoadSystems.com/ > > ___ > 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. ___ 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.
Re: Integrating Profit and Loss Report into a set of books and the trial balance
On Tue, Mar 6, 2018, at 10:13 AM, jcnw wrote: > I am setting up a set of books for a small church and need to run a month > profit and loss report. > How do I enter the Net Income for the Period into the books so it shows up > in the balance sheet? > I have set up the books with Income, Expense, Asset and Liability accounts. > Do I need to set up a P&L account. > Thanks for help and consideration > John Closing the books will do that. But you may not want to close the books monthly. Instead you may want to run an income statement for each month, and not close the books till the end of the year. The tutorial concepts guide has more about this. It caused me to change my accounting period from a month to a year, and specify start and end dates for each month's income statement. When you run a balance sheet as of a particular date, the total of income minus expenses is automatically placed on the balance sheet, in a category called retained earnings, so you don't have to do anything to compute it. However, the Retained Earnings in the balance sheet does not pay attention to the accounting period. Say your accounting period is monthly and you close the books at the end of the year (as I do). When you run a balance sheet as of 31 January, the Retained Earnings figure shown is of course the net income for January. But when you run a balance sheet as of 28 February, Retained earnings is the total of the two months January and February, in a single number. In other words, Retained Earnings is always the total of income minus expenses since the last time you closed the books. By contrast, the income statement does respect the dates you set on Edit » Report Options. (I think that's the right menu option; I don't have the software on this computer.) -- Stan Brown the_stan_br...@fastmail.fm http://BrownMath.com http://OakRoadSystems.com/ ___ 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.
Integrating Profit and Loss Report into a set of books and the trial balance
I am setting up a set of books for a small church and need to run a month profit and loss report. How do I enter the Net Income for the Period into the books so it shows up in the balance sheet? I have set up the books with Income, Expense, Asset and Liability accounts. Do I need to set up a P&L account. Thanks for help and consideration John -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html ___ 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.