[GNC] two lines for every entry

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[GNC] two lines for every entry

GnuCash - User mailing list
Hi All,

On a credit card account, when ever I enter a charge and press
enter, I get a second line with the charge amount entered into
the payments column.  If I delete the payment line, it deletes
the charge line too.

<editorial comment> AAAAAHHHHHHHHHHHH!!!! </editorial comment>

What the h***.  ("Heck", what did you think I meant?)

Many thanks,
-T

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Re: [GNC] two lines for every entry

GnuCash - User mailing list

Todd,

I strongly suggest you read the Guide-- especially the chapters that cover double entry accounting and other basics. 

David
 
 
  On Thu, Apr 11, 2019 at 10:45, ToddAndMargo via gnucash-user<[hidden email]> wrote:   Hi All,

On a credit card account, when ever I enter a charge and press
enter, I get a second line with the charge amount entered into
the payments column.  If I delete the payment line, it deletes
the charge line too.

<editorial comment> AAAAAHHHHHHHHHHHH!!!! </editorial comment>

What the h***.  ("Heck", what did you think I meant?)

Many thanks,
-T

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Serious error.
All shortcuts have disappeared.
Screen. Mind. Both are blank.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

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Re: [GNC] two lines for every entry

GnuCash - User mailing list
>> David
>>
>>     On Thu, Apr 11, 2019 at 10:45, ToddAndMargo via gnucash-user
>>     <[hidden email]> wrote:
>>     Hi All,
>>
>>     On a credit card account, when ever I enter a charge and press
>>     enter, I get a second line with the charge amount entered into
>>     the payments column.  If I delete the payment line, it deletes
>>     the charge line too.
>>
>>     <editorial comment> AAAAAHHHHHHHHHHHH!!!! </editorial comment>
>>
>>     What the h***.  ("Heck", what did you think I meant?)
>>
>>     Many thanks,
>>     -T
>>

On 4/10/19 10:43 PM, David T. wrote:
>
> Todd,
>
>
> I strongly suggest you read the Guide-- especially the chapters that
> cover double entry accounting and other basics.

Should I attend a class in book keeping too?

I just want to know how to use the d*** thing.

I am starting to think I may be better off using a
spreadsheet.







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Re: [GNC] two lines for every entry

Adrien Monteleone-2
Read my other replies.

Every transaction has entries in two accounts (hence ‘double entry accounting’)

The first few chapters of the guide won’t take long and will alleviate much potential frustration that would ensue if you try to wing it.

GnuCash is not so complicated to use that you need to take a bookkeeping course, but you do have to abide its workflow, just like any other app. (including spreadsheets)

(knowledge of accounting doesn’t hurt, but you can just pay a CPA for that part if you like)

Regards,
Adrien

> On Apr 11, 2019, at 12:55 AM, ToddAndMargo via gnucash-user <[hidden email]> wrote:
>
>>> David
>>>    On Thu, Apr 11, 2019 at 10:45, ToddAndMargo via gnucash-user
>>>    <[hidden email]> wrote:
>>>    Hi All,
>>>    On a credit card account, when ever I enter a charge and press
>>>    enter, I get a second line with the charge amount entered into
>>>    the payments column.  If I delete the payment line, it deletes
>>>    the charge line too.
>>>    <editorial comment> AAAAAHHHHHHHHHHHH!!!! </editorial comment>
>>>    What the h***.  ("Heck", what did you think I meant?)
>>>    Many thanks,
>>>    -T
>>>
>
> On 4/10/19 10:43 PM, David T. wrote:
>> Todd,
>> I strongly suggest you read the Guide-- especially the chapters that cover double entry accounting and other basics.
>
> Should I attend a class in book keeping too?
>
> I just want to know how to use the d*** thing.
>
> I am starting to think I may be better off using a
> spreadsheet.
>


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Re: [GNC] two lines for every entry

David Cousens
In reply to this post by GnuCash - User mailing list
Todd,

The conceptual bit behind double entry bookkeeping is that when you charge
something to your credit card you:
 1. Increase the balance of your credit card (a credit entry); and at the
same time
 2. Increase the balance of an expense account ( a debit entry).

Similarly when you pay your credit card you:
  1 Decrease the balance in your bank account (a credit entryand at the same
time
  1 Decrease the balance of your credit card account (a debit entry).

Many single entry account systems often hide one of these steps from you and
make assumptions about where the second entry takes place.

The process is similar for other transactions as well. Two or more accounts
(e.g with Sales tax) are affected by each transaction, hence the two lines
(known as splits in GnuCash) that appear when an entry in an account
register is opened to reveal the splits. In the above the brackets identify
the colums the amount will appear in when using the formal accounting
labels. Each transaction must have at least one debit and one credit
component (it may have more than one of each) and the sum of the debit
entries must equal the sum of the credit entries.

As Adrien suggested, reading the introductory material will introduce you to
the jargon used and provide the necessary background to effectively use
GnuCash.

David Cousens




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Re: [GNC] two lines for every entry

GnuCash - User mailing list
In reply to this post by Adrien Monteleone-2
On 4/10/19 11:18 PM, Adrien Monteleone wrote:

> Read my other replies.
>
> Every transaction has entries in two accounts (hence ‘double entry accounting’)
>
> The first few chapters of the guide won’t take long and will alleviate much potential frustration that would ensue if you try to wing it.
>
> GnuCash is not so complicated to use that you need to take a bookkeeping course, but you do have to abide its workflow, just like any other app. (including spreadsheets)
>
> (knowledge of accounting doesn’t hurt, but you can just pay a CPA for that part if you like)
>
> Regards,
> Adrien

Hi Adrian,

Do you have a link?

So, do I set up two account for every credit card?  Will
the link cover this?

Is this what you are talking about?
https://www.gnucash.org/docs/v3/C/gnucash-guide/cc-accounts1.html

      7.2.1. Simple Setup
      If you do not want to track each expense made on the credit
      card, you can set up a simple account hierarchy like this:

      -Assets
         -Bank
      -Liabilities
         -Credit Card
      -Expenses
         -Credit Card

      In this example, if you enter your total amount charged
      per month as a transaction between Liabilities:Credit Card
      and Expenses:Credit Card. When you make a payment, you
      would enter transaction between Assets:Bank and
      Liabilities:Credit Card.

      The obvious limitation of this simple credit card setup is
      that you cannot see where your money is going. All you
      credit card expenses are being entered in the Credit Card
      expense account. This is, however, very simple to set up
      and maintain.


"Liabilities:Credit Card" and "Expenses:Credit Card".  Huh.
Which one is charges I make and which one is payments I make?
And which one get the opening and closing balances?

-T



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Re: [GNC] two lines for every entry

AC
On 2019-04-10 23:48, ToddAndMargo via gnucash-user wrote:
> So, do I set up two account for every credit card?  Will
> the link cover this?
>

You set up one account for the card (Liabilities: Credit Card), one for
the bank (Assets: Bank) and then you have as many set up as you want for
expenses.

When you buy something, charge the card and have the "other" account be
Expenses: Groceries, Expenses: Gasoline, etc.  Whatever you want as long
as the "other" account is some kind of expense account.

When you pay the credit card, it comes from Assets: Bank

Things like Quicken and Microsoft Money hid this by using the Payee as
the "other" account so it was relatively automatic.  But GnuCash also
does auto-fill as you type so if your Description field was
"Supermarket" for the first time you set up a transaction between the
credit card and Expenses: Groceries, it'll remember that account
arrangement next time you enter "Supermarket" and then you only have to
change the amount.

For basic tracking the accounts will only have to be set up once and the
auto-fill will help you out afterwards (just change the amounts).

If you have more than one card just set it up as Liabilities: Card 1,
Liabilities Card 2, or other arrangements however you wish as long as
they're all liability accounts.  Same for multiple bank accounts, just
make sure they're all asset accounts.
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Re: [GNC] two lines for every entry

GnuCash - User mailing list
In reply to this post by David Cousens
On 4/10/19 11:47 PM, David Cousens wrote:
> Todd,
>
> The conceptual bit behind double entry bookkeeping is that when you charge
> something to your credit card you:
>   1. Increase the balance of your credit card (a credit entry); and at the
> same time
>   2. Increase the balance of an expense account ( a debit entry).

Hi David,

Do I set up two separate accounts for 1 and 2 above?

>
> Similarly when you pay your credit card you:
>    1 Decrease the balance in your bank account (a credit entryand at the same
> time

Uhhhh.  I pay my card off from all different sources.  I do not
want them linked. I only care that a payment was made.  From
where, I don't care.  I basically want my credit card accounts to be
stand alone.

>    1 Decrease the balance of your credit card account (a debit entry).
>

> As Adrien suggested, reading the introductory material will introduce you to
> the jargon used and provide the necessary background to effectively use
> GnuCash.
>
> David Cousens

Oh no doubt.  The learning curve is going to kill me.

Thank you for all the help,
-T

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Re: [GNC] two lines for every entry

David Cousens
In reply to this post by GnuCash - User mailing list
Todd

The link for the introductory material is

 https://www.gnucash.org/docs/v3/C/gnucash-guide/chapter_basics.html

The help manual is more oriented towrds what button does what

https://www.gnucash.org/docs/v3/C/gnucash-help/help.html

David Cousens



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Re: [GNC] two lines for every entry

GnuCash - User mailing list
In reply to this post by AC
On 4/11/19 12:04 AM, AC wrote:

> On 2019-04-10 23:48, ToddAndMargo via gnucash-user wrote:
>> So, do I set up two account for every credit card?  Will
>> the link cover this?
>>
>
> You set up one account for the card (Liabilities: Credit Card), one for
> the bank (Assets: Bank) and then you have as many set up as you want for
> expenses.
>
> When you buy something, charge the card and have the "other" account be
> Expenses: Groceries, Expenses: Gasoline, etc.  Whatever you want as long
> as the "other" account is some kind of expense account.
>
> When you pay the credit card, it comes from Assets: Bank
>
> Things like Quicken and Microsoft Money hid this by using the Payee as
> the "other" account so it was relatively automatic.  But GnuCash also
> does auto-fill as you type so if your Description field was
> "Supermarket" for the first time you set up a transaction between the
> credit card and Expenses: Groceries, it'll remember that account
> arrangement next time you enter "Supermarket" and then you only have to
> change the amount.
>
> For basic tracking the accounts will only have to be set up once and the
> auto-fill will help you out afterwards (just change the amounts).
>
> If you have more than one card just set it up as Liabilities: Card 1,
> Liabilities Card 2, or other arrangements however you wish as long as
> they're all liability accounts.  Same for multiple bank accounts, just
> make sure they're all asset accounts.

In my next life.

Right now I just want to enter charges and payment to
a credit card.  Where the payment comes from, I DON'T CARE.

This is very frustrating for me.




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Re: [GNC] two lines for every entry

Adrien Monteleone-2
In reply to this post by GnuCash - User mailing list
I don’t recommend using that method in the documentation. (it even says it has a major drawback) Use the more formal method of assigning expenses to separate expense accounts and set up the credit card as a liability or credit card type account. (done for you if you used the account wizard at startup)

I’ll give you a brief overview, but please, read the Help and Guide documents. They are going to help tremendously.

Also, consider the View options I mentioned earlier. Switch to Transaction Journal view. (Double Line is optional, but useful as noted)

Finally, I highly recommend you change the Preference to ‘Use Formal Accounting Labels’.

The informal labels can be very confusing, and so far, they seem to be tripping you up. Debits and Credit will make much more sense in the long run.

-----------

Now, for how double entry works:

Money does not appear or disappear. It moves from one place to another. This is accomplished by each transaction having two entry ’splits’, one debit, one credit. (don’t think of them as increase/decrease just yet, but merely, ‘left column’ and ‘right column’)

Each transaction must balance with an equal amount (value, not quantity) of debits and credits. (abbreviated Dr. and Cr. respectively)

I’ll keep these transactions simple.

Example of spending cash on a snowcone:

Dr. Expenses:Snacks $5
Cr. Assets:Current Assets:Cash $5


Example of that same purchase on a credit card:

Dr. Expenses:Snacks $5
Cr. Liabilities:Credit Cards:VISA-1234 $5

(naming your card accounts with the last 4 digits is a good way to quickly tell them apart if you have more than one)

Making the monthly payment to your credit card company:

Dr. Liabilities:Credit Cards:VISA-1234 $250
Cr. Assets:Current Assets:Checking $250


As you can see, each transaction has at least 2 ’splits’ or entries (double-entry accounting) and the sum of the debits equal the sum of the credits. (simple in this case)

I find it a good habit to always enter transactions into the register where the money is coming from, and then the other split(s) will always be where the money is going to. So most of my transactions are entered from my asset accounts and the other splits are either expense accounts or liability accounts. (paying them off)

I don’t use a credit card, but if I did, I’d enter expenses charged on the card in the card register since that is where the money is coming from to pay the expense and assign the other splits to the relevant expense accounts.

Following this practice will help ensure you don’t get mixed up as to what is coming and going account-wise.

If you are not using the Transaction Journal view as recommended, then the ’transfer’ account will be the one that isn’t the account you are in. GnuCash will auto-create the split entry for the current register in that case. (what you were seeing as you commented in an earlier reply about seeing a payment and charge for each transaction)

As you can see from the above examples, if you kept using the ‘payment/charge’ labels instead of the formal debit/credit labels, things could get confusing really fast, because those ‘friendly informal’ labels cease making sense.

---------

So that’s the gist of double-entry accounting.

You don’t need two credit card accounts. (unless you are tracking two separate cards)

One of the entries is for the card, the other for either an expense account or an asset account. (likely, ‘checking’ when you make a payment)

The very first transaction for liabilities and assets is called an ‘Opening Balance’ entry, and is usually asked when you first create the account. (not necessary to enter in that window if you don’t know it at the time)

To make/edit an opening balance entry, simple create a transaction in the respective account (credit card in your case) and give it the description “Opening Balance”.

Enter the amount owed on the card that you are carrying forward as a credit. Then balance this with a debit to an account called Equity:Opening Balances.

Dr. Equity:Opening Balances
Cr. Liabilities:Credit Cards:VISA-1234

Now, as I recall from one of your other threads, the card company owed you at the end of the last period. So you’d enter the credit and debit reversed:

Dr. Liabilities:Credit Cards:VISA-1234
Cr. Equity:Opening Balances

---------------

Now I’ll answer the inevitable question, “How do I know when to use debit/credit and do these mean increase/decrease?”

The answer is, “It depends on the type of account.”

A debit (left column entry) means an increase to the following account types:

Asset
Expense

(a credit to these accounts will decrease them)

A credit (right column entry) means an increase to:

Liability
Income
Equity

(a debit to these accounts will decrease them)

To picture why this is the case, I’ll refer you to the Accounting Equation:

Assets = Liabilities + Equity

This equation must ALWAYS be in balance. (achieved with equal debits and credits)

This simple equation can be expanded a bit since for the *current period:

Equity = Income - Expenses

thus:

Assets = Liabilities + (Income - Expenses)

If you want to get fancy and factor this, you get:

Assets + Expenses = Liabilities + Income + Equity

*Equity is included again because we have to carry over the result of Income-Expenses from previous periods. (usually known as ‘Retained Earnings’)


Notice something about that final expanded equation?

The left side accounts are increased by debits and decreased by credits.

The right side account are increased by credits and decreased by debits.

This allows all numbers to be entered as positive amounts, and everything balances.

--------

As a final note, some people at this point usually get their ‘debits/credits’ backwards because they reference statements by their bank or credit card company ‘crediting their account’ which they know to be increasing it. (putting money back into it)

This is correct terminology, but from the OTHER set of books. (for the bank or credit card company)

For them, your account lies on the opposite side of the accounting equation than from your books. (your asset is their liability and vice versa)

Hope that helps, lots to digest, I know...

Regards,
Adrien



> On Apr 11, 2019, at 1:48 AM, ToddAndMargo via gnucash-user <[hidden email]> wrote:
>
> On 4/10/19 11:18 PM, Adrien Monteleone wrote:
>> Read my other replies.
>> Every transaction has entries in two accounts (hence ‘double entry accounting’)
>> The first few chapters of the guide won’t take long and will alleviate much potential frustration that would ensue if you try to wing it.
>> GnuCash is not so complicated to use that you need to take a bookkeeping course, but you do have to abide its workflow, just like any other app. (including spreadsheets)
>> (knowledge of accounting doesn’t hurt, but you can just pay a CPA for that part if you like)
>> Regards,
>> Adrien
>
> Hi Adrian,
>
> Do you have a link?
>
> So, do I set up two account for every credit card?  Will
> the link cover this?
>
> Is this what you are talking about?
> https://www.gnucash.org/docs/v3/C/gnucash-guide/cc-accounts1.html
>
>     7.2.1. Simple Setup
>     If you do not want to track each expense made on the credit
>     card, you can set up a simple account hierarchy like this:
>
>     -Assets
>        -Bank
>     -Liabilities
>        -Credit Card
>     -Expenses
>        -Credit Card
>
>     In this example, if you enter your total amount charged
>     per month as a transaction between Liabilities:Credit Card
>     and Expenses:Credit Card. When you make a payment, you
>     would enter transaction between Assets:Bank and
>     Liabilities:Credit Card.
>
>     The obvious limitation of this simple credit card setup is
>     that you cannot see where your money is going. All you
>     credit card expenses are being entered in the Credit Card
>     expense account. This is, however, very simple to set up
>     and maintain.
>
>
> "Liabilities:Credit Card" and "Expenses:Credit Card".  Huh.
> Which one is charges I make and which one is payments I make?
> And which one get the opening and closing balances?
>
> -T

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Re: [GNC] two lines for every entry

GnuCash - User mailing list
In reply to this post by GnuCash - User mailing list
On 4/11/19 12:33 AM, ToddAndMargo via gnucash-user wrote:
> You set up one account for the card (Liabilities: Credit Card), one for
> the bank (Assets: Bank) and then you have as many set up as you want for
> expenses.
>
> When you buy something, charge the card and have the "other" account be
> Expenses: Groceries, Expenses: Gasoline, etc.  Whatever you want as long
> as the "other" account is some kind of expense account.
>
> When you pay the credit card, it comes from Assets: Bank

 From what I can tell, when I charge something, GnuCash
automatically deducts it from my Assets:bank.  This
is frustrating to me because I have done no such thing.
It should wait until I actually make a payment.

I think Rube Goldberg is having an good laugh at my expense.



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Re: [GNC] two lines for every entry

Adrien Monteleone-2
In reply to this post by GnuCash - User mailing list
Sorry to break it to you. You have to care, to enter the transaction.

EACH AND EVERY transaction has two entries or splits.

A payment will have one split to the card account and the other to whatever asset you used to make that payment.

Accounting isn’t adding things up. (well, not simply anyway)

It is tracking *where* money is coming from and *where* it is going to.

You have to track both parts, not just one side.

If you made a cash payment one month, enter that as:

Dr. Liabilities:Credit Card:VISA-1234
Cr. Assets:Current Assets:Cash

If you later made a payment by check:

Dr. Liabilities:Credit Card:VISA-1234
Cr. Assets:Current Assets:Checking

Not all payments have to be from the same place, but you do have to say where they came from. That’s how it works.

Regards,
Adrien

> On Apr 11, 2019, at 2:33 AM, ToddAndMargo via gnucash-user <[hidden email]> wrote:
>
> On 4/11/19 12:04 AM, AC wrote:
>> On 2019-04-10 23:48, ToddAndMargo via gnucash-user wrote:
>>> So, do I set up two account for every credit card?  Will
>>> the link cover this?
>>>
>> You set up one account for the card (Liabilities: Credit Card), one for
>> the bank (Assets: Bank) and then you have as many set up as you want for
>> expenses.
>> When you buy something, charge the card and have the "other" account be
>> Expenses: Groceries, Expenses: Gasoline, etc.  Whatever you want as long
>> as the "other" account is some kind of expense account.
>> When you pay the credit card, it comes from Assets: Bank
>> Things like Quicken and Microsoft Money hid this by using the Payee as
>> the "other" account so it was relatively automatic.  But GnuCash also
>> does auto-fill as you type so if your Description field was
>> "Supermarket" for the first time you set up a transaction between the
>> credit card and Expenses: Groceries, it'll remember that account
>> arrangement next time you enter "Supermarket" and then you only have to
>> change the amount.
>> For basic tracking the accounts will only have to be set up once and the
>> auto-fill will help you out afterwards (just change the amounts).
>> If you have more than one card just set it up as Liabilities: Card 1,
>> Liabilities Card 2, or other arrangements however you wish as long as
>> they're all liability accounts.  Same for multiple bank accounts, just
>> make sure they're all asset accounts.
>
> In my next life.
>
> Right now I just want to enter charges and payment to
> a credit card.  Where the payment comes from, I DON'T CARE.
>
> This is very frustrating for me.


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Re: [GNC] two lines for every entry

GnuCash - User mailing list
In reply to this post by Adrien Monteleone-2
On 4/11/19 12:37 AM, Adrien Monteleone wrote:
> I highly recommend you change the Preference to ‘Use Formal Accounting Labels’.

I opened preferences under edit.  I went through each category on the
left column.  I could not find it.

:'(


--
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Computers are like air conditioners.
They malfunction when you open windows
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Re: [GNC] two lines for every entry

Adrien Monteleone-2
In reply to this post by GnuCash - User mailing list
No, it is not automatically deducting your bank account.

If you see the bank account decrease then you aren’t entering the charged expense correctly, you’re entering a payment.

Really, I suggest you stop and pause.

READ the Help and Guide as suggested with the app open for reference.

READ over my other replies and change the preference and view settings I recommended. (you can always change them back later)

You need to see the entire data in the transaction using the formal accounting labels or you are just going to get lost, fast.

GnuCash is not an app you can just start using and intuitively guess your way through it, especially if you have no background in bookkeeping or accounting. You need to learn how to use the app first and how the app is designed to work. The Help and Guide will explain this to you.

Regards,
Adrien

> On Apr 11, 2019, at 2:42 AM, ToddAndMargo via gnucash-user <[hidden email]> wrote:
>
> On 4/11/19 12:33 AM, ToddAndMargo via gnucash-user wrote:
>> You set up one account for the card (Liabilities: Credit Card), one for
>> the bank (Assets: Bank) and then you have as many set up as you want for
>> expenses.
>> When you buy something, charge the card and have the "other" account be
>> Expenses: Groceries, Expenses: Gasoline, etc.  Whatever you want as long
>> as the "other" account is some kind of expense account.
>> When you pay the credit card, it comes from Assets: Bank
>
> From what I can tell, when I charge something, GnuCash
> automatically deducts it from my Assets:bank.  This
> is frustrating to me because I have done no such thing.
> It should wait until I actually make a payment.
>
> I think Rube Goldberg is having an good laugh at my expense.

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Re: [GNC] two lines for every entry

Adrien Monteleone-2
In reply to this post by GnuCash - User mailing list
It is found under Accounts > Labels in the Preferences.

Regards,
Adrien

> On Apr 11, 2019, at 2:45 AM, ToddAndMargo via gnucash-user <[hidden email]> wrote:
>
> On 4/11/19 12:37 AM, Adrien Monteleone wrote:
>> I highly recommend you change the Preference to ‘Use Formal Accounting Labels’.
>
> I opened preferences under edit.  I went through each category on the left column.  I could not find it.
>
> :'(

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Re: [GNC] two lines for every entry

GnuCash - User mailing list
In reply to this post by Adrien Monteleone-2
On 4/11/19 12:43 AM, Adrien Monteleone wrote:

> Sorry to break it to you. You have to care, to enter the transaction.
>
> EACH AND EVERY transaction has two entries or splits.
>
> A payment will have one split to the card account and the other to whatever asset you used to make that payment.
>
> Accounting isn’t adding things up. (well, not simply anyway)
>
> It is tracking*where*  money is coming from and*where*  it is going to.
>
> You have to track both parts, not just one side.

I get it.  Just telling it I made a payment will not suffice.
I has to know where it came from.

>
> If you made a cash payment one month, enter that as:
>
> Dr. Liabilities:Credit Card:VISA-1234
> Cr. Assets:Current Assets:Cash
>
> If you later made a payment by check:
>
> Dr. Liabilities:Credit Card:VISA-1234
> Cr. Assets:Current Assets:Checking
>
> Not all payments have to be from the same place, but you do have to say where they came from. That’s how it works.
>
> Regards,
> Adrien

Hi Adrian,

You know, I actually am starting to follow.

And I am now pretty much aware that I am trying to
use a super computer where my fingers would suffice.

I think at this point, I should probably switch to a
spreadsheet.  I am not doing "bookkeeping".  I am
just tracking purchases and payments.

I also tested HomeBank and KMyMoney.  Home Bank crashed
setting up and account, so it got removed.    KMyMoney,
what can I say, it is just weird.  It is just about
to get removed too.

Rube Goldberg is laughing at me.

Thank you for all the help,
-T




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Re: [GNC] two lines for every entry

David Cousens
In reply to this post by GnuCash - User mailing list
Hi Todd,

>Do I set up two separate accounts for 1 and 2 above?


Yes. If you used the common accounts selection when you created a new file you should have an account tree with a basic
set of common asset, liability, equity, expense and income accounts. They make a good starting point for a beginning
chart of accounts. There should be a liability account for a credit card and multiple expense accounts for things that
most people would track separately. You can add to this or prune it as you need.

> Uhhhh.  I pay my card off from all different sources.  I do not
> want them linked. I only care that a payment was made.  From
> where, I don't care.  I basically want my credit card accounts to be
> stand alone.

Each source you use to pay off your credit card should have its own account in GnuCash. GnuCash is a full featured
accounting package designed to track where money is coming from and where it is going to, what you owe and what is owed
to you and what your net financial worth is.  You could in principle do that by having a generic Asset:bank account that
payments are made from and a single generic expense account to record charges against it, but it would be serious
overkill to use GnuCash just get that capability. It is also designed to track what types of expenses you spend money
on. Expense accounts are similar to expense categories in some other accounting packages which are either not full
double entry accounting systems or try to hide the double entry nature from the user.

Oh no doubt.  The learning curve is going to kill me.

None of us have died yet AFAIK. I am sure there are quite a few cases of raised blood pressure at times. If you need a
full accounting system then it is worth the effort.

David Cousens



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Re: [GNC] two lines for every entry

Adrien Monteleone-2
In reply to this post by GnuCash - User mailing list
Spreadsheets work, as does pen and paper. There are some simplified apps out there to do basic expense tracking. (your card company might even offer as part of their web portal to your account)

GnuCash can do that, but it is really designed to track everything, not just one side of one account. (you can use it that way of course, but life can be a bit frustrating at first)

Best of luck. We’re here if you decide to stay.

Regards,
Adrien

> On Apr 11, 2019, at 2:57 AM, ToddAndMargo via gnucash-user <[hidden email]> wrote:
>
> On 4/11/19 12:43 AM, Adrien Monteleone wrote:
>> Sorry to break it to you. You have to care, to enter the transaction.
>> EACH AND EVERY transaction has two entries or splits.
>> A payment will have one split to the card account and the other to whatever asset you used to make that payment.
>> Accounting isn’t adding things up. (well, not simply anyway)
>> It is tracking*where*  money is coming from and*where*  it is going to.
>> You have to track both parts, not just one side.
>
> I get it.  Just telling it I made a payment will not suffice.
> I has to know where it came from.
>
>> If you made a cash payment one month, enter that as:
>> Dr. Liabilities:Credit Card:VISA-1234
>> Cr. Assets:Current Assets:Cash
>> If you later made a payment by check:
>> Dr. Liabilities:Credit Card:VISA-1234
>> Cr. Assets:Current Assets:Checking
>> Not all payments have to be from the same place, but you do have to say where they came from. That’s how it works.
>> Regards,
>> Adrien
>
> Hi Adrian,
>
> You know, I actually am starting to follow.
>
> And I am now pretty much aware that I am trying to
> use a super computer where my fingers would suffice.
>
> I think at this point, I should probably switch to a
> spreadsheet.  I am not doing "bookkeeping".  I am
> just tracking purchases and payments.
>
> I also tested HomeBank and KMyMoney.  Home Bank crashed
> setting up and account, so it got removed.    KMyMoney,
> what can I say, it is just weird.  It is just about
> to get removed too.
>
> Rube Goldberg is laughing at me.
>
> Thank you for all the help,
> -T
>


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Re: [GNC] two lines for every entry

GnuCash - User mailing list
In reply to this post by Adrien Monteleone-2

>> On Apr 11, 2019, at 2:45 AM, ToddAndMargo via gnucash-user <[hidden email]> wrote:
>>
>> On 4/11/19 12:37 AM, Adrien Monteleone wrote:
>>> I highly recommend you change the Preference to ‘Use Formal Accounting Labels’.
>>
>> I opened preferences under edit.  I went through each category on the left column.  I could not find it.
>>
>> :'(


On 4/11/19 12:51 AM, Adrien Monteleone wrote:> It is found under
Accounts > Labels in the Preferences.
>
> Regards,
> Adrien
>
Right under my nose!  And you are right, it is much more intuitive.


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