Re: [GNC] Problems organizing accounts to process reimbursement of expenses
Mike, Thanks. I ended up splitting the transaction in my checking account or credit card, with non-tax-deductible 90% going to expenses:house:utilities, and the tax deductible 10% going to assets:debts of company to me. That seems to work, unless I'm missing something. I was able to get rid of one account which was redundant. Thanks again, On Sun, 2019-12-15 at 18:25 -0500, Michael or Penny Novack wrote: > On 12/15/2019 5:35 PM, Daffy Duck wrote: > > Mike, > > > > I figured it out with your suggestions, thanks! > > > BTW, sorry if I made it more complicated than you might have expected > BUT was assuming that you would want/need to be able to report on what > portion of the electric bill that was not going to be reimbursed was for > the home office: Thus > > 1) Going to be reimbursed --- not an expense > > 2) For home office not being reimbursed --- a tax deductible expense > > 3) For rest of house -- a non tax deductible expense > > > Michael > ___ 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: [GNC] Problems organizing accounts to process reimbursement of expenses
On 12/15/2019 5:35 PM, Daffy Duck wrote: Mike, I figured it out with your suggestions, thanks! BTW, sorry if I made it more complicated than you might have expected BUT was assuming that you would want/need to be able to report on what portion of the electric bill that was not going to be reimbursed was for the home office: Thus 1) Going to be reimbursed --- not an expense 2) For home office not being reimbursed --- a tax deductible expense 3) For rest of house -- a non tax deductible expense Michael ___ 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: [GNC] Problems organizing accounts to process reimbursement of expenses
Mike, I figured it out with your suggestions, thanks! On Sun, 2019-12-15 at 15:05 -0600, Daffy Duck wrote: > Mike, > Sorry, Just a better explanation on my part: > For instance, the electric bill is paid by credit card, and it is > transferred from expenses:house:utilities:electric, and may be $100 > So it takes $100 from credit card and transfers to > expenses:house:utilities:electric - I list this account as an > expense, which seems right, because 90% of it is. > I can then deduct 10% of that that will be reimbursed. This is where > I'm messing up... the best way to annotate that. Do I need ONE or > TWO more accounts to track this? Right now, as mentioned, I have an > expenses:personal expenses paid account, which seems to be wrong, > where I annotate 10% of that electric bill and it transfers from > asset = the money that the business has to reimburse me. > I hope that makes sense, > Thanks. > On Sun, 2019-12-15 at 14:54 -0600, Daffy Duck wrote: > > Mike, > > Thanks. If I hadn't learned basic bookkeeping, I wouldn't have > > been using gnucash without major issues for the last 15+ years. > > I don't think split is the way to go here, because it's mirrored to > > an actual transaction(but I could be wrong). > > For instance, the electric bill is paid for by the credit card, and > > the transfer is between credit card and > > house:expenses:utilities:electricity - that is where the 100% of > > the charge shows > > I then annotate it separately, the 10%, in expenses:expenses I paid > > - I am thinking this may be wrong, because now it's showing 110% > > under combined expenses, because I already showed 10% > > The transfer here is from the assets - debts to company > > When I'm reimbursed, it transfers from my checking account, where > > it is deposited, and should decrease the amount from assets: debts > > to company. Instead, it is increasing(or decreasing a negative, > > which means it looks like an additional charge). > > That is what I'm trying to figure out what to do differently. I > > think this is beyond basic bookkeeping. I'll admit I probably > > should have known about this before, but I thought I'd ask because > > I'm able to do everything else with gnucash and I have been for > > over 15 years. > > Thank you for your time, > > On Sun, 2019-12-15 at 10:59 -0500, Michael or Penny Novack wrote: > > > Just a periodic reminder about questions like this. We may be > > > able to help you BUT this is not a question about gnucash, not a > > > question "how do I do this in gnucash" but how do I set up these > > > accounts/transactions using ANY method of doing double entry > > > bookkeeping, even the old fashioned way of pen and ink on lined > > > accounting paper < how it was when I learned 60+ years ago > > > > What you are missing --- an expense for which the business > > > reimburses you is not YOUR expense. You say only a portion is > > > reimbursed> For the purpose of this example I will assume 1/2 > > > (you use whatever is right for you). Let's say there is an > > > expense item for share of home office electric bill and that the > > > home office was assigned 1/8 of the total electric bill. > > > You pay an electric bill of $160. You would enter this as a split > > > transaction: > > > debits: rest of house electric $140 home office > > > electric $10 reimbursable expenses > > > $10 (this is an asset account; owed to you by employer -- > > > not YOUR expense) credits: checking accountcheck #x > > > description: paid march electric bill<< note: I have shown this > > > as would appear in an old fashioned journal --- a gnucash > > > question might be how do I do it in a virtual journal system like > > > gnucash, how do I do a split transaction, etc. >> > > > The company reimburses you for its share of home office expense: > > > debit: checking account $10credit: reimbursable expenses $10 > > > description: deposit of reimbursement check > > > When both of these transactions have completed, the balance in > > > reimbursable expenses will be zero (had a debit for $10 and a > > > credit for $10). > > > I'm sorry, but while gnucash makes the process of entering > > > transactions easier and MUCH less prone to error than the old > > > fashioned way and makes producing reports easier it does NOT mean > > > you can skip learning basic bookkeeping. > > > Michael D Novack > > > > > > > > > On 12/15/2019 2:33 AM, Daffy Duck wrote: > > > > Hello, > > > > I'm trying to set up an account scheme that adequately tracks > > > > expensesthat the business reimburses me for due to using a home > > > > office. Thisis separate from using a business credit card, > > > > because only a portionis reimbursable. > > > > The relevant accounts in my personal book are: > > > > Checking account - account type bank > > > > Expense debt - account type asset (since it's owed to me) > > > > Business expense paid personally - Expense > > > > Credit car
Re: [GNC] Problems organizing accounts to process reimbursement of expenses
It will depend upon whether you are maintaining separate books for your personal accounts and your business accounts and separate bank accounts. The process Mike described would be appropriate where your books are totally separate, i.e. you and your business are separate legal entities. From your description it would appear you may be operating as what is called a sole trader in Australia where you are not a separate legal entity from the business and its assets and liabilities are your assets and liabilities and vice versa. There can still be a case for maintaining separate books in this situation, particularly if the business operation is significant. >From your description you do not appear to be maintaining separate books for your business operation but have business specific accounts in your account structure usually income and expense accounts if your business has no significant assets for example that are associated with the business operations. When do you apportion the bill between your personal use and your business use? If you do it when you receive and pay the bill with your credit card the transaction would be Liability:Credit cardCr Expense:Personal:Electricity Dr 0.9 Expense:Business:ElectricityDr 0.1 Your annotations in the memo and description fields will need to describe what each split of the transaction is for e.g. "Business use of household electricity" and possibly reference to the basis on which you arrive at the 90%-10% split, if this is not a legislated amount specified by your relevant legislation/regulations. in my case it was simply the percentage of the floor area of the house occupied by my home office and covered utilities, rates, maintenance etc. (the ATO is generous) but other jurisdictions may have other rules and this is where you will need local professional advice. This should be sufficient if you do not maintain a separate bank account for the business and it is only where you maintain separate bank accounts you will need to consider reimbursement of your personal account from your business account. If you do have separate bank accounts come back and we can come up with an alternative. David Cousens - David Cousens -- 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.
Re: [GNC] Problems organizing accounts to process reimbursement of expenses
Mike, Sorry, Just a better explanation on my part: For instance, the electric bill is paid by credit card, and it is transferred from expenses:house:utilities:electric, and may be $100 So it takes $100 from credit card and transfers to expenses:house:utilities:electric - I list this account as an expense, which seems right, because 90% of it is. I can then deduct 10% of that that will be reimbursed. This is where I'm messing up... the best way to annotate that. Do I need ONE or TWO more accounts to track this? Right now, as mentioned, I have an expenses:personal expenses paid account, which seems to be wrong, where I annotate 10% of that electric bill and it transfers from asset = the money that the business has to reimburse me. I hope that makes sense, Thanks. On Sun, 2019-12-15 at 14:54 -0600, Daffy Duck wrote: > Mike, > Thanks. If I hadn't learned basic bookkeeping, I wouldn't have been > using gnucash without major issues for the last 15+ years. > I don't think split is the way to go here, because it's mirrored to > an actual transaction(but I could be wrong). > For instance, the electric bill is paid for by the credit card, and > the transfer is between credit card and > house:expenses:utilities:electricity - that is where the 100% of the > charge shows > I then annotate it separately, the 10%, in expenses:expenses I paid - > I am thinking this may be wrong, because now it's showing 110% under > combined expenses, because I already showed 10% > The transfer here is from the assets - debts to company > When I'm reimbursed, it transfers from my checking account, where it > is deposited, and should decrease the amount from assets: debts to > company. Instead, it is increasing(or decreasing a negative, which > means it looks like an additional charge). > That is what I'm trying to figure out what to do differently. I > think this is beyond basic bookkeeping. I'll admit I probably should > have known about this before, but I thought I'd ask because I'm able > to do everything else with gnucash and I have been for over 15 years. > Thank you for your time, > On Sun, 2019-12-15 at 10:59 -0500, Michael or Penny Novack wrote: > > Just a periodic reminder about questions like this. We may be able > > to help you BUT this is not a question about gnucash, not a > > question "how do I do this in gnucash" but how do I set up these > > accounts/transactions using ANY method of doing double entry > > bookkeeping, even the old fashioned way of pen and ink on lined > > accounting paper < how it was when I learned 60+ years ago > > > What you are missing --- an expense for which the business > > reimburses you is not YOUR expense. You say only a portion is > > reimbursed> For the purpose of this example I will assume 1/2 (you > > use whatever is right for you). Let's say there is an expense item > > for share of home office electric bill and that the home office was > > assigned 1/8 of the total electric bill. > > You pay an electric bill of $160. You would enter this as a split > > transaction: > > debits: rest of house electric $140 home office > > electric $10 reimbursable expenses $10 > > (this is an asset account; owed to you by employer -- not YOUR > > expense) credits: checking accountcheck #x > > description: paid march electric bill<< note: I have shown this as > > would appear in an old fashioned journal --- a gnucash question > > might be how do I do it in a virtual journal system like gnucash, > > how do I do a split transaction, etc. >> > > The company reimburses you for its share of home office expense: > > debit: checking account $10credit: reimbursable expenses $10 > > description: deposit of reimbursement check > > When both of these transactions have completed, the balance in > > reimbursable expenses will be zero (had a debit for $10 and a > > credit for $10). > > I'm sorry, but while gnucash makes the process of entering > > transactions easier and MUCH less prone to error than the old > > fashioned way and makes producing reports easier it does NOT mean > > you can skip learning basic bookkeeping. > > Michael D Novack > > > > > > On 12/15/2019 2:33 AM, Daffy Duck wrote: > > > Hello, > > > I'm trying to set up an account scheme that adequately tracks > > > expensesthat the business reimburses me for due to using a home > > > office. Thisis separate from using a business credit card, > > > because only a portionis reimbursable. > > > The relevant accounts in my personal book are: > > > Checking account - account type bank > > > Expense debt - account type asset (since it's owed to me) > > > Business expense paid personally - Expense > > > Credit card - credit card > > > --- > > > > > > Whenever I pay certain bills, I annotate in Business expense > > > paidpersonally, and it's transferred from expense debt > > > account(expense debtdecreases as expenses increase) > > > This was working fine, but when I was reimbursed for my
Re: [GNC] Problems organizing accounts to process reimbursement of expenses
Mike, Thanks. If I hadn't learned basic bookkeeping, I wouldn't have been using gnucash without major issues for the last 15+ years. I don't think split is the way to go here, because it's mirrored to an actual transaction(but I could be wrong). For instance, the electric bill is paid for by the credit card, and the transfer is between credit card and house:expenses:utilities:electricity - that is where the 100% of the charge shows I then annotate it separately, the 10%, in expenses:expenses I paid - I am thinking this may be wrong, because now it's showing 110% under combined expenses, because I already showed 10% The transfer here is from the assets - debts to company When I'm reimbursed, it transfers from my checking account, where it is deposited, and should decrease the amount from assets: debts to company. Instead, it is increasing(or decreasing a negative, which means it looks like an additional charge). That is what I'm trying to figure out what to do differently. I think this is beyond basic bookkeeping. I'll admit I probably should have known about this before, but I thought I'd ask because I'm able to do everything else with gnucash and I have been for over 15 years. Thank you for your time, On Sun, 2019-12-15 at 10:59 -0500, Michael or Penny Novack wrote: > Just a periodic reminder about questions like this. We may be able to > help you BUT this is not a question about gnucash, not a question > "how do I do this in gnucash" but how do I set up these > accounts/transactions using ANY method of doing double entry > bookkeeping, even the old fashioned way of pen and ink on lined > accounting paper < how it was when I learned 60+ years ago > > What you are missing --- an expense for which the business reimburses > you is not YOUR expense. You say only a portion is reimbursed> For > the purpose of this example I will assume 1/2 (you use whatever is > right for you). Let's say there is an expense item for share of home > office electric bill and that the home office was assigned 1/8 of the > total electric bill. > You pay an electric bill of $160. You would enter this as a split > transaction: > debits: rest of house electric $140 home office > electric $10 reimbursable expenses $10 > (this is an asset account; owed to you by employer -- not YOUR > expense) credits: checking accountcheck #x description: > paid march electric bill<< note: I have shown this as would appear in > an old fashioned journal --- a gnucash question might be how do I do > it in a virtual journal system like gnucash, how do I do a split > transaction, etc. >> > The company reimburses you for its share of home office expense: > debit: checking account $10credit: reimbursable expenses $10 > description: deposit of reimbursement check > When both of these transactions have completed, the balance in > reimbursable expenses will be zero (had a debit for $10 and a credit > for $10). > I'm sorry, but while gnucash makes the process of entering > transactions easier and MUCH less prone to error than the old > fashioned way and makes producing reports easier it does NOT mean you > can skip learning basic bookkeeping. > Michael D Novack > > > On 12/15/2019 2:33 AM, Daffy Duck wrote: > > Hello, > > I'm trying to set up an account scheme that adequately tracks > > expensesthat the business reimburses me for due to using a home > > office. Thisis separate from using a business credit card, because > > only a portionis reimbursable. > > The relevant accounts in my personal book are: > > Checking account - account type bank > > Expense debt - account type asset (since it's owed to me) > > Business expense paid personally - Expense > > Credit card - credit card > > --- > > > > Whenever I pay certain bills, I annotate in Business expense > > paidpersonally, and it's transferred from expense debt > > account(expense debtdecreases as expenses increase) > > This was working fine, but when I was reimbursed for my expenses to > > mychecking account, I had it transfer between expense debt, so it > > woulddecrease the amount that the business owes me. > > The problem is, it's already in the negative as its listed as > > anasset(expense debt), so the reimbursement payment just increases > > theamount of that, going the opposite way I'm trying to go. > > Instead of the business debt being $437 and I get reimbursed for > > $437and make it 0, it's listed as -$437 and after the reimbursement > > hits,it's -$874. > > What am I doing wrong here? > > Thank you, > > ___gnucash-user mailing > > listgnucash-u...@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
Re: [GNC] Problems organizing accounts to process reimbursement of expenses
Just a periodic reminder about questions like this. We may be able to help you BUT this is not a question about gnucash, not a question "how do I do this in gnucash" but how do I set up these accounts/transactions using ANY method of doing double entry bookkeeping, even the old fashioned way of pen and ink on lined accounting paper < how it was when I learned 60+ years ago > What you are missing --- an expense for which the business reimburses you is not YOUR expense. You say only a portion is reimbursed> For the purpose of this example I will assume 1/2 (you use whatever is right for you). Let's say there is an expense item for share of home office electric bill and that the home office was assigned 1/8 of the total electric bill. You pay an electric bill of $160. You would enter this as a split transaction: debits: rest of house electric $140 home office electric $10 reimbursable expenses $10 (this is an asset account; owed to you by employer -- not YOUR expense) credits: checking account check #x description: paid march electric bill << note: I have shown this as would appear in an old fashioned journal --- a gnucash question might be how do I do it in a virtual journal system like gnucash, how do I do a split transaction, etc. >> The company reimburses you for its share of home office expense: debit: checking account $10 credit: reimbursable expenses $10 description: deposit of reimbursement check When both of these transactions have completed, the balance in reimbursable expenses will be zero (had a debit for $10 and a credit for $10). I'm sorry, but while gnucash makes the process of entering transactions easier and MUCH less prone to error than the old fashioned way and makes producing reports easier it does NOT mean you can skip learning basic bookkeeping. Michael D Novack On 12/15/2019 2:33 AM, Daffy Duck wrote: Hello, I'm trying to set up an account scheme that adequately tracks expenses that the business reimburses me for due to using a home office. This is separate from using a business credit card, because only a portion is reimbursable. The relevant accounts in my personal book are: Checking account - account type bank Expense debt - account type asset (since it's owed to me) Business expense paid personally - Expense Credit card - credit card --- Whenever I pay certain bills, I annotate in Business expense paid personally, and it's transferred from expense debt account(expense debt decreases as expenses increase) This was working fine, but when I was reimbursed for my expenses to my checking account, I had it transfer between expense debt, so it would decrease the amount that the business owes me. The problem is, it's already in the negative as its listed as an asset(expense debt), so the reimbursement payment just increases the amount of that, going the opposite way I'm trying to go. Instead of the business debt being $437 and I get reimbursed for $437 and make it 0, it's listed as -$437 and after the reimbursement hits, it's -$874. What am I doing wrong here? Thank you, ___ 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. -- There is no possibility of social justice on a dead planet except the equality of the grave. ___ 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.
[GNC] Problems organizing accounts to process reimbursement of expenses
Hello, I'm trying to set up an account scheme that adequately tracks expenses that the business reimburses me for due to using a home office. This is separate from using a business credit card, because only a portion is reimbursable. The relevant accounts in my personal book are: Checking account - account type bank Expense debt - account type asset (since it's owed to me) Business expense paid personally - Expense Credit card - credit card --- Whenever I pay certain bills, I annotate in Business expense paid personally, and it's transferred from expense debt account(expense debt decreases as expenses increase) This was working fine, but when I was reimbursed for my expenses to my checking account, I had it transfer between expense debt, so it would decrease the amount that the business owes me. The problem is, it's already in the negative as its listed as an asset(expense debt), so the reimbursement payment just increases the amount of that, going the opposite way I'm trying to go. Instead of the business debt being $437 and I get reimbursed for $437 and make it 0, it's listed as -$437 and after the reimbursement hits, it's -$874. What am I doing wrong here? Thank you, ___ 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.
