Re: [GNC] The correct way to account for prepaid things that comes with bonuses

2021-12-06 Thread davidcousens49 
Mattio,

Since you receive the discount at the time you purchase the pack and it is
available to you at that point so that is really the point at which I would
record it. 

David

On Mon, 2021-12-06 at 23:02 +0100, Mattia Rizzolo wrote:
> Hi David, Gyle.
> 
> Thank you for your input.  It looks both of you agree that this should
> be a negative expense rather than in income.
> 
> On Tue, Dec 07, 2021 at 06:35:22AM +1000, davidcousen...@gmail.com wrote:
> > This would allow you to keep track on
> > both the original expense and the economic benefit you receive by the bulk
> > purchase
> 
> Good point, indeed.
> 
> > However if your jurisdiction were to tax such discounts, treating it as
> > income
> > will likely be more appropriate. It is really the tax treatment which
> > decides
> > how best to account for it.
> > If you are unsure consult an accountant in your jurisdiction.
> 
> This book is for personal porpuses, and in any case that purchase is
> done for me, rather than for my business.
> I'm not sure about the tax implication of such bonuses for business, but
> for people it's not taxable (I'm sure here!), so marking it down as a
> negative expense is fine here.
> 
> Regardless, then, another question that I didn't consider it earlier.
> The negative charge in that's going to be Expenses:Travel:Rental: should
> it be credited in bulk at the time of the purchase of the pack, or
> somehow split over multiple accounting periods?  If yes, how would I go
> about splitting this?
> 
> 
> Thanks again for your help! :)
> 
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Re: [GNC] The correct way to account for prepaid things that comes with bonuses

2021-12-06 Thread Mattia Rizzolo 
Hi David, Gyle.

Thank you for your input.  It looks both of you agree that this should
be a negative expense rather than in income.

On Tue, Dec 07, 2021 at 06:35:22AM +1000, davidcousen...@gmail.com wrote:
> This would allow you to keep track on
> both the original expense and the economic benefit you receive by the bulk
> purchase

Good point, indeed.

> However if your jurisdiction were to tax such discounts, treating it as income
> will likely be more appropriate. It is really the tax treatment which decides
> how best to account for it.
> If you are unsure consult an accountant in your jurisdiction.

This book is for personal porpuses, and in any case that purchase is
done for me, rather than for my business.
I'm not sure about the tax implication of such bonuses for business, but
for people it's not taxable (I'm sure here!), so marking it down as a
negative expense is fine here.

Regardless, then, another question that I didn't consider it earlier.
The negative charge in that's going to be Expenses:Travel:Rental: should
it be credited in bulk at the time of the purchase of the pack, or
somehow split over multiple accounting periods?  If yes, how would I go
about splitting this?


Thanks again for your help! :)

-- 
regards,
Mattia Rizzolo

GPG Key: 66AE 2B4A FCCF 3F52 DA18  4D18 4B04 3FCD B944 4540  .''`.
More about me:  https://mapreri.org : :'  :
Launchpad user: https://launchpad.net/~mapreri  `. `'`
Debian QA page: https://qa.debian.org/developer.php?login=mattia  `-


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Re: [GNC] The correct way to account for prepaid things that comes with bonuses

2021-12-06 Thread davidcousens49 
Mattio,

It is possible more correctly described as a discount on the expense so instead
of crediting an Income:Bonuses account you could credit what accountants call a
contra account to Expenses:Travel:Rental which couuld be named
Expenses:Travel:Rental:Discounts which sums into the parent expense account,
i.e. it is essentially a price reduction. This would allow you to keep track on
both the original expense and the economic benefit you receive by the bulk
purchase The moped owner is essentially compensating you in part for the extra
interest he earns on the money you have deposited with him in advance.

However if your jurisdiction were to tax such discounts, treating it as income
will likely be more appropriate. It is really the tax treatment which decides
how best to account for it.  
If you are unsure consult an accountant in your jurisdiction.

David Cousens 
On Mon, 2021-12-06 at 18:01 +0100, Mattia Rizzolo wrote:
> Hi!
> 
> I wanted to more correctly account for the local "moped sharing" company
> we have here, which offers to buy a prepaid package that comes with a
> bonus.
> 
> In this case, I bought a 90€ package that comes with a 40€ bonus, so my
> in-app wallet is credited with 130€.
> I planned to store that 130€ in Assets:PrepaidExpenses, to be whittled
> down whenever I do rent a moped, at which point it's expensed.
> 
> Now, that sounds all fine to me, but I'm not really sure where those 40€
> should come from.
> 
> Right now I did:
> 
> 2021-10-08  Buy package
> Assets:PrepaidExpenses:Moped   130.00
> Liabilities:CreditsCards:…… 90.00
> Income:Bonuses  40.00
> 
> 2021-11-04  Rental
> Assets:PrepaidExpenses:Moped4.93
> Expenses:Travel:Rental4.93
> (etc)
> 
> 
> But I don't think that should really come from Income: :\
> 
> 
> Opinion/suggestions/recommendations? :)
> 
> Thank you in advance!
> 
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Re: [GNC] The correct way to account for prepaid things that comes with bonuses

2021-12-06 Thread Gyle McCollam 
That looks correct to me.  However, I don't like to classify a "Bonus" as 
Income, unless they are taxable.  I would record it as a negative expense, 
again if it is not taxable.  That is how I record cash back on my various 
credit cards, it is more of a purchase discount than an income amount.


Thank You,
Gyle McCollam

Gyle McCollam

609.680.2326 Mobile

gmccol...@live.com   email


From: gnucash-user  on 
behalf of Mattia Rizzolo 
Sent: Monday, December 6, 2021 12:01 PM
To: gnucash-user@gnucash.org 
Subject: [GNC] The correct way to account for prepaid things that comes with 
bonuses

Hi!

I wanted to more correctly account for the local "moped sharing" company
we have here, which offers to buy a prepaid package that comes with a
bonus.

In this case, I bought a 90€ package that comes with a 40€ bonus, so my
in-app wallet is credited with 130€.
I planned to store that 130€ in Assets:PrepaidExpenses, to be whittled
down whenever I do rent a moped, at which point it's expensed.

Now, that sounds all fine to me, but I'm not really sure where those 40€
should come from.

Right now I did:

2021-10-08  Buy package
Assets:PrepaidExpenses:Moped   130.00
Liabilities:CreditsCards:…… 90.00
Income:Bonuses  40.00

2021-11-04  Rental
Assets:PrepaidExpenses:Moped4.93
Expenses:Travel:Rental4.93
(etc)


But I don't think that should really come from Income: :\


Opinion/suggestions/recommendations? :)

Thank you in advance!

--
regards,
Mattia Rizzolo

GPG Key: 66AE 2B4A FCCF 3F52 DA18  4D18 4B04 3FCD B944 4540  .''`.
More about me:  https://mapreri.org : :'  :
Launchpad user: https://launchpad.net/~mapreri  `. `'`
Debian QA page: https://qa.debian.org/developer.php?login=mattia  `-
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