Please bear with the 2367345836th newcomer :)

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Please bear with the 2367345836th newcomer :)

Bob Alexander
Ok, maybe it's my English, maybe it's my accounting ignorance but I am
quite lost.

Can I please slowly ask some questions on how to setup my accounts and
proceed with proper operations ? Promise will learn quickly ! :)

Let say I have the following:

1) My bank account

my emplying company salary and bonuses get transferred there monthly
my credit card withdraws money from my bank account on a monthly basis

Here is what I would like to achieve:

Scenario 1) When I travel I use my credit card. Some of the expenses are
personal and some are reimbursable from my company. My bank account will
get debited for the whole amount but later on my company should make a
bank transfer to my bank account to cover all the expenses.
I want to be sure that I communicate ALL of the latter to my company
I want to be sure that my company sends money to my bank for the same
amount (just want to check for any errors).

Scenario 2) When I have a medical expense I pay cash or with my credit
card. I want to be sure that I remember sending all of these expenses to
my insurance. I also want to be sure that my insurance sends me the
corresponding reimbursements (which are not equal to the expense. For
example some categories are reimbursed at 70%, some at 50% and in any
case there is a maximum annual expense ceiling for all categories over
which I will not be reimbursed at all).

What type of account to set for these scenarios and what
operations/details to enter to track them ?

I will get by bank statement quarterly.

Thank you very much,
Bob Alexander
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Re: Please bear with the 2367345836th newcomer :)

Andrew Sackville-West


Bob Alexander wrote:
> Ok, maybe it's my English, maybe it's my accounting ignorance but I am
> quite lost.
>
> Can I please slowly ask some questions on how to setup my accounts and
> proceed with proper operations ? Promise will learn quickly ! :)

of course you can.

>
> Let say I have the following:
>
> 1) My bank account
>
> my emplying company salary and bonuses get transferred there monthly
> my credit card withdraws money from my bank account on a monthly basis
>
> Here is what I would like to achieve:
>
> Scenario 1) When I travel I use my credit card. Some of the expenses are
> personal and some are reimbursable from my company. My bank account will
> get debited for the whole amount but later on my company should make a
> bank transfer to my bank account to cover all the expenses.
> I want to be sure that I communicate ALL of the latter to my company
> I want to be sure that my company sends money to my bank for the same
> amount (just want to check for any errors).

maintain a "credit card" account, as a liability. set up expense
accounts for your personal expenses in whatever manner you choose, as
well as reimburseable business expense ASSET account for your employer
expenses. As you use your credit card, enter transactions for your
personal expenses normally, but enter your business expenses as a debit
to the asset account that you set up for those expenses. When you
receive your reimbursement, enter it as coming from that asset into your
checking account. the balance of that asset is what the company owes you
at any given time.
>
> Scenario 2) When I have a medical expense I pay cash or with my credit
> card. I want to be sure that I remember sending all of these expenses to
> my insurance. I also want to be sure that my insurance sends me the
> corresponding reimbursements (which are not equal to the expense. For
> example some categories are reimbursed at 70%, some at 50% and in any
> case there is a maximum annual expense ceiling for all categories over
> which I will not be reimbursed at all).

when you enter the transactions for medical expenses, you should
probably split the transaction between an expense account for your
portion and another asset account ("pending medical reimbursements" or
some such) for the amounts to be reimbursed. then, as before, when you
receive the reimbursement, the money comes from the asset to your
checking account.

I have sent you a second email with a sample file that shows these
transactions. hope that helps

Andrew

ps. if anyone else wants this REALLY simple sample file, let me know

A

>
> What type of account to set for these scenarios and what
> operations/details to enter to track them ?
>
> I will get by bank statement quarterly.
>
> Thank you very much,
> Bob Alexander
> _______________________________________________
> gnucash-user mailing list
> [hidden email]
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
>
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Re: Please bear with the 2367345836th newcomer :)

Bill Wohler
Andrew Sackville-West <[hidden email]> writes:

> Bob Alexander wrote:

Hey Bob, welcome to Gnucash! If your ACPI on ThinkPad experience is
any indication, you will learn fast!

>> Scenario 1) When I travel I use my credit card. Some of the expenses
>> are personal and some are reimbursable from my company. My bank
>> account will get debited for the whole amount but later on my
>> company should make a bank transfer to my bank account to cover all
>> the expenses.
>> I want to be sure that I communicate ALL of the latter to my company
>> I want to be sure that my company sends money to my bank for the
>> same amount (just want to check for any errors).

I do what Andrew suggests. I also use Assets to handle money I owe or
that are due to me from friends, relatives, and roommates.

>> Scenario 2) When I have a medical expense I pay cash or with my
>> credit card. I want to be sure that I remember sending all of these
>> expenses to my insurance. I also want to be sure that my insurance
>> sends me the corresponding reimbursements (which are not equal to
>> the expense. For example some categories are reimbursed at 70%, some
>> at 50% and in any case there is a maximum annual expense ceiling for
>> all categories over which I will not be reimbursed at all).
>
> when you enter the transactions for medical expenses, you should
> probably split the transaction between an expense account for your
> portion and another asset account ("pending medical reimbursements" or
> some such) for the amounts to be reimbursed. then, as before, when you
> receive the reimbursement, the money comes from the asset to your
> checking account.

What I do here is to credit the Medical account with the expense from
the credit card liability account. When I get the reimbursement (as a
check, say), I enter the deposit in my Checking account and specify
the same Medical expense account which debits the Medical account and
thereby offsets the expense.

--
Bill Wohler <[hidden email]>  http://www.newt.com/wohler/  GnuPG ID:610BD9AD
Maintainer of comp.mail.mh FAQ and MH-E. Vote Libertarian!
If you're passed on the right, you're in the wrong lane.

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Re: Please bear with the 2367345836th newcomer :)

Paul Schwartz


--- Bill Wohler <[hidden email]> wrote:

> Andrew Sackville-West <[hidden email]>
> writes:
>
> > Bob Alexander wrote:
>
> Hey Bob, welcome to Gnucash! If your ACPI on
> ThinkPad experience is
> any indication, you will learn fast!
>
> >> Scenario 1) When I travel I use my credit card.
> Some of the expenses
> >> are personal and some are reimbursable from my
> company. My bank
> >> account will get debited for the whole amount but
> later on my
> >> company should make a bank transfer to my bank
> account to cover all
> >> the expenses.
> >> I want to be sure that I communicate ALL of the
> latter to my company
> >> I want to be sure that my company sends money to
> my bank for the
> >> same amount (just want to check for any errors).
>
> I do what Andrew suggests. I also use Assets to
> handle money I owe or
> that are due to me from friends, relatives, and
> roommates.
>
> >> Scenario 2) When I have a medical expense I pay
> cash or with my
> >> credit card. I want to be sure that I remember
> sending all of these
> >> expenses to my insurance. I also want to be sure
> that my insurance
> >> sends me the corresponding reimbursements (which
> are not equal to
> >> the expense. For example some categories are
> reimbursed at 70%, some
> >> at 50% and in any case there is a maximum annual
> expense ceiling for
> >> all categories over which I will not be
> reimbursed at all).
> >
> > when you enter the transactions for medical
> expenses, you should
> > probably split the transaction between an expense
> account for your
> > portion and another asset account ("pending
> medical reimbursements" or
> > some such) for the amounts to be reimbursed. then,
> as before, when you
> > receive the reimbursement, the money comes from
> the asset to your
> > checking account.
>
> What I do here is to credit the Medical account with
> the expense from
> the credit card liability account. When I get the
> reimbursement (as a
> check, say), I enter the deposit in my Checking
> account and specify
> the same Medical expense account which debits the
> Medical account and
> thereby offsets the expense.

That's good except you have Db and Cr reversed [I
think].

IANAA

Paul Schwartz

> --
> Bill Wohler <[hidden email]>


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Re: Please bear with the 2367345836th newcomer :)

Andrew Sackville-West


Paul Schwartz wrote:

>
> That's good except you have Db and Cr reversed [I
> think].
>
> IANAA
>
> Paul Schwartz


which will always plague this list for all eternity.

I was going to differ with you here, but I realise that its not worth it
as IANAA either and its just too much to watch two non-accountants
argue. I'm sure that we could sell tickets to actual accountants for
lurking on this list and laughing all the way to the bank...

cheers

A
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Re: Please bear with the 2367345836th newcomer :)

David Harrison-2
On 6/17/05, Andrew Sackville-West <[hidden email]> wrote:

>
>
> Paul Schwartz wrote:
>
> >
> > That's good except you have Db and Cr reversed [I
> > think].
> >
> > IANAA
> >
> > Paul Schwartz
>
>
> which will always plague this list for all eternity.
>
> I was going to differ with you here, but I realise that its not worth it
> as IANAA either and its just too much to watch two non-accountants
> argue. I'm sure that we could sell tickets to actual accountants for
> lurking on this list and laughing all the way to the bank...
>
> cheers
>
> A

I'll be the first to buy one, too!! lol

Here is a link to the Wiki where I explain (or at least attempt to)
the difference between Dr and Cr.

http://gnomesupport.org/wiki/index.php/GnuCashFaq#Q:_What_are_debits_and_credits.3F

Basically, increases in Revenues, Liabilities, and Equity are Credits.
 While increases in Expenses and Assets are Debits.  Decreases in each
are the inverse.

--
David Harrison, BAccS, CGA

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Re: Please bear with the 2367345836th newcomer :)

Paul Schwartz
In reply to this post by Andrew Sackville-West


--- Andrew Sackville-West
<[hidden email]> wrote:

>
>
> Paul Schwartz wrote:
>
> >
> > That's good except you have Db and Cr reversed [I
> > think].
> >
> > IANAA
> >
> > Paul Schwartz
>
>
> which will always plague this list for all eternity.
>
> I was going to differ with you here, but I realise
> that its not worth it
> as IANAA either and its just too much to watch two
> non-accountants
> argue. I'm sure that we could sell tickets to actual
> accountants for
> lurking on this list and laughing all the way to the
> bank...
>
> cheers
>
> A
>
I could be sand bagging you as my wife WIAA has been
trying to beat this stuff into my head for years. As
the computer literate member of the family I get to do
all of the data entry.

Paul


       
               
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