Three-way transaction, that I am not sure how to handle...

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Three-way transaction, that I am not sure how to handle...

Robert Heller
I recently set myself up with a PayPal Debit card, which I am using to
pay for recurring business expenses.  Because I also have a PayPal
button on my web site, I am getting 1% cash back.

I generally don't carry a balance on my PayPal account, so the funds are
drawn from my (business) checking account as a 'backup funding source.

Now what happens is this: PayPal performs three transations:

1) Pays the charge.
2) Transfers the needed amount from my checking account to cover the
charge.
3) Awards the cash-back amount to the PayPal account.

Right now, I have two regular transactions, a transfer from my checking
account to the PayPal account and a transfer from the PayPal account to
the payee (I have not put in a transaction for the cash back yet).

Does it make any sense to bundle the whole transaction sequence as a
split transaction?  Or should I just have three transactions? If the
former, I am not totally sure what the split transaction will look like.

--
Robert Heller             -- 978-544-6933
Deepwoods Software        -- Linux Installation and Administration
http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
                                                                         
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Robert Heller                      -- 978-544-6933
Deepwoods Software        -- Download the Model Railroad System
http://www.deepsoft.com/  -- Binaries for Linux and MS-Windows
heller@deepsoft.com        -- http://www.deepsoft.com/ModelRailroadSystem/
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Fwd: Three-way transaction, that I am not sure how to handle...

Dawning Sky
Forgot CC'ing to the list.

---------- Forwarded message ----------
From: Dawning Sky <[hidden email]>
Date: Sep 18, 2006 4:48 PM
Subject: Re: Three-way transaction, that I am not sure how to handle...
To: Robert Heller <[hidden email]>


On 9/18/06, Robert Heller <[hidden email]> wrote:

> I recently set myself up with a PayPal Debit card, which I am using to
> pay for recurring business expenses.  Because I also have a PayPal
> button on my web site, I am getting 1% cash back.
>
> I generally don't carry a balance on my PayPal account, so the funds are
> drawn from my (business) checking account as a 'backup funding source.
>
> Now what happens is this: PayPal performs three transations:
>
> 1) Pays the charge.
> 2) Transfers the needed amount from my checking account to cover the
> charge.
> 3) Awards the cash-back amount to the PayPal account.
>
> Right now, I have two regular transactions, a transfer from my checking
> account to the PayPal account and a transfer from the PayPal account to
> the payee (I have not put in a transaction for the cash back yet).
>
> Does it make any sense to bundle the whole transaction sequence as a
> split transaction?  Or should I just have three transactions? If the
> former, I am not totally sure what the split transaction will look like.

I'm no expert in accounting, but I suppose either way is fine.  The
"three-transaction" way is *probably* easier for gnucash to match the
transcations if you ever import downloaded transcations from paypal.
The "one-transaction" way probably has a cleaner looking, but
basically you just combine the six lines you'll have in the three
transactions into one transcation.

DS
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RE: Three-way transaction, that I am not sure how to handle...

Jack Whale
In reply to this post by Robert Heller
Nor am I an accountant.
I was wondering, though, whether PayPal does this all at once with each
transaction or if it draws out of your checking account and pays the rebate,
say, once a month(or week, or day)?
jw

>From: Robert Heller <[hidden email]>
>To: Gnucash <[hidden email]>
>Subject: Three-way transaction, that I am not sure how to handle...
>Date: Mon, 18 Sep 2006 19:34:12 -0400
>
>I recently set myself up with a PayPal Debit card, which I am using to
>pay for recurring business expenses.  Because I also have a PayPal
>button on my web site, I am getting 1% cash back.
>
>I generally don't carry a balance on my PayPal account, so the funds are
>drawn from my (business) checking account as a 'backup funding source.
>
>Now what happens is this: PayPal performs three transations:
>
>1) Pays the charge.
>2) Transfers the needed amount from my checking account to cover the
>charge.
>3) Awards the cash-back amount to the PayPal account.
>
>Right now, I have two regular transactions, a transfer from my checking
>account to the PayPal account and a transfer from the PayPal account to
>the payee (I have not put in a transaction for the cash back yet).
>
>Does it make any sense to bundle the whole transaction sequence as a
>split transaction?  Or should I just have three transactions? If the
>former, I am not totally sure what the split transaction will look like.
>
>--
>Robert Heller             -- 978-544-6933
>Deepwoods Software        -- Linux Installation and Administration
>http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
>[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
>
>_______________________________________________
>gnucash-user mailing list
>[hidden email]
>https://lists.gnucash.org/mailman/listinfo/gnucash-user
>-----
>Please remember to CC this list on all your replies.
>You can do this by using Reply-To-List or Reply-All.

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RE: Three-way transaction, that I am not sure how to handle...

Robert Heller
At Mon, 18 Sep 2006 17:05:11 -0700 "Jack Whale" <[hidden email]> wrote:

>
> Nor am I an accountant.
> I was wondering, though, whether PayPal does this all at once with each
> transaction or if it draws out of your checking account and pays the rebate,
> say, once a month(or week, or day)?

They record it as three sucessive transactions, for each debit card
usage.  I guess if I had a suffiencient balance in my PayPal account, it
would only be two transactions.

> jw
>
> >From: Robert Heller <[hidden email]>
> >To: Gnucash <[hidden email]>
> >Subject: Three-way transaction, that I am not sure how to handle...
> >Date: Mon, 18 Sep 2006 19:34:12 -0400
> >
> >I recently set myself up with a PayPal Debit card, which I am using to
> >pay for recurring business expenses.  Because I also have a PayPal
> >button on my web site, I am getting 1% cash back.
> >
> >I generally don't carry a balance on my PayPal account, so the funds are
> >drawn from my (business) checking account as a 'backup funding source.
> >
> >Now what happens is this: PayPal performs three transations:
> >
> >1) Pays the charge.
> >2) Transfers the needed amount from my checking account to cover the
> >charge.
> >3) Awards the cash-back amount to the PayPal account.
> >
> >Right now, I have two regular transactions, a transfer from my checking
> >account to the PayPal account and a transfer from the PayPal account to
> >the payee (I have not put in a transaction for the cash back yet).
> >
> >Does it make any sense to bundle the whole transaction sequence as a
> >split transaction?  Or should I just have three transactions? If the
> >former, I am not totally sure what the split transaction will look like.
> >
> >--
> >Robert Heller             -- 978-544-6933
> >Deepwoods Software        -- Linux Installation and Administration
> >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
> >[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
> >
> >_______________________________________________
> >gnucash-user mailing list
> >[hidden email]
> >https://lists.gnucash.org/mailman/listinfo/gnucash-user
> >-----
> >Please remember to CC this list on all your replies.
> >You can do this by using Reply-To-List or Reply-All.
>
> _________________________________________________________________
> Express yourself - download free Windows Live Messenger themes!
> http://clk.atdmt.com/MSN/go/msnnkwme0020000001msn/direct/01/?href=http://imagine-msn.com/themes/vibe/default.aspx?locale=en-us&source=hmtagline
>
>                  

--
Robert Heller             -- 978-544-6933
Deepwoods Software        -- Linux Installation and Administration
http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
                                                                                                     
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-----
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You can do this by using Reply-To-List or Reply-All.
Robert Heller                      -- 978-544-6933
Deepwoods Software        -- Download the Model Railroad System
http://www.deepsoft.com/  -- Binaries for Linux and MS-Windows
heller@deepsoft.com        -- http://www.deepsoft.com/ModelRailroadSystem/
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RE: Three-way transaction, that I am not sure how to handle...

Jack Whale
In reply to this post by Robert Heller
In that case, and again I'm no accountant, I would enter it as shown in the
screenshot that I have attached.

jw


>From: Robert Heller <[hidden email]>
>To: "Jack Whale" <[hidden email]>
>CC: [hidden email], Robert Heller <[hidden email]>
>Subject: RE: Three-way transaction, that I am not sure how to handle...
>Date: Tue, 19 Sep 2006 07:00:17 -0400
>
>At Mon, 18 Sep 2006 17:05:11 -0700 "Jack Whale" <[hidden email]>
>wrote:
>
> >
> > Nor am I an accountant.
> > I was wondering, though, whether PayPal does this all at once with each
> > transaction or if it draws out of your checking account and pays the
>rebate,
> > say, once a month(or week, or day)?
>
>They record it as three sucessive transactions, for each debit card
>usage.  I guess if I had a suffiencient balance in my PayPal account, it
>would only be two transactions.
>
> > jw
> >
> > >From: Robert Heller <[hidden email]>
> > >To: Gnucash <[hidden email]>
> > >Subject: Three-way transaction, that I am not sure how to handle...
> > >Date: Mon, 18 Sep 2006 19:34:12 -0400
> > >
> > >I recently set myself up with a PayPal Debit card, which I am using to
> > >pay for recurring business expenses.  Because I also have a PayPal
> > >button on my web site, I am getting 1% cash back.
> > >
> > >I generally don't carry a balance on my PayPal account, so the funds
>are
> > >drawn from my (business) checking account as a 'backup funding source.
> > >
> > >Now what happens is this: PayPal performs three transations:
> > >
> > >1) Pays the charge.
> > >2) Transfers the needed amount from my checking account to cover the
> > >charge.
> > >3) Awards the cash-back amount to the PayPal account.
> > >
> > >Right now, I have two regular transactions, a transfer from my checking
> > >account to the PayPal account and a transfer from the PayPal account to
> > >the payee (I have not put in a transaction for the cash back yet).
> > >
> > >Does it make any sense to bundle the whole transaction sequence as a
> > >split transaction?  Or should I just have three transactions? If the
> > >former, I am not totally sure what the split transaction will look
>like.
> > >
> > >--
> > >Robert Heller             -- 978-544-6933
> > >Deepwoods Software        -- Linux Installation and Administration
> > >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
> > >[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
> > >
> > >_______________________________________________
> > >gnucash-user mailing list
> > >[hidden email]
> > >https://lists.gnucash.org/mailman/listinfo/gnucash-user
> > >-----
> > >Please remember to CC this list on all your replies.
> > >You can do this by using Reply-To-List or Reply-All.
> >
> > _________________________________________________________________
> > Express yourself - download free Windows Live Messenger themes!
> >
>http://clk.atdmt.com/MSN/go/msnnkwme0020000001msn/direct/01/?href=http://imagine-msn.com/themes/vibe/default.aspx?locale=en-us&source=hmtagline
> >
> >
>
>--
>Robert Heller             -- 978-544-6933
>Deepwoods Software        -- Linux Installation and Administration
>http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
>[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
>
_________________________________________________________________
Add fun gadgets and colorful themes to express yourself on Windows Live
Spaces  
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Screenshot.png (57K) Download Attachment
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Re: Three-way transaction, that I am not sure how to handle...

Dawning Sky
On 9/19/06, Jack Whale <[hidden email]> wrote:
> In that case, and again I'm no accountant, I would enter it as shown in the
> screenshot that I have attached.
>

Two questions:

1. Why do you treat paypal as a liability.  It's more like an asset in
my opinion.
2. I suppose what paypal does is that it first draws from the bank
account $100, and then credit $1 rebate to the paypal account.

DS


> jw
>
>
> >From: Robert Heller <[hidden email]>
> >To: "Jack Whale" <[hidden email]>
> >CC: [hidden email], Robert Heller <[hidden email]>
> >Subject: RE: Three-way transaction, that I am not sure how to handle...
> >Date: Tue, 19 Sep 2006 07:00:17 -0400
> >
> >At Mon, 18 Sep 2006 17:05:11 -0700 "Jack Whale" <[hidden email]>
> >wrote:
> >
> > >
> > > Nor am I an accountant.
> > > I was wondering, though, whether PayPal does this all at once with each
> > > transaction or if it draws out of your checking account and pays the
> >rebate,
> > > say, once a month(or week, or day)?
> >
> >They record it as three sucessive transactions, for each debit card
> >usage.  I guess if I had a suffiencient balance in my PayPal account, it
> >would only be two transactions.
> >
> > > jw
> > >
> > > >From: Robert Heller <[hidden email]>
> > > >To: Gnucash <[hidden email]>
> > > >Subject: Three-way transaction, that I am not sure how to handle...
> > > >Date: Mon, 18 Sep 2006 19:34:12 -0400
> > > >
> > > >I recently set myself up with a PayPal Debit card, which I am using to
> > > >pay for recurring business expenses.  Because I also have a PayPal
> > > >button on my web site, I am getting 1% cash back.
> > > >
> > > >I generally don't carry a balance on my PayPal account, so the funds
> >are
> > > >drawn from my (business) checking account as a 'backup funding source.
> > > >
> > > >Now what happens is this: PayPal performs three transations:
> > > >
> > > >1) Pays the charge.
> > > >2) Transfers the needed amount from my checking account to cover the
> > > >charge.
> > > >3) Awards the cash-back amount to the PayPal account.
> > > >
> > > >Right now, I have two regular transactions, a transfer from my checking
> > > >account to the PayPal account and a transfer from the PayPal account to
> > > >the payee (I have not put in a transaction for the cash back yet).
> > > >
> > > >Does it make any sense to bundle the whole transaction sequence as a
> > > >split transaction?  Or should I just have three transactions? If the
> > > >former, I am not totally sure what the split transaction will look
> >like.
> > > >
> > > >--
> > > >Robert Heller             -- 978-544-6933
> > > >Deepwoods Software        -- Linux Installation and Administration
> > > >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
> > > >[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
> > > >
> > > >_______________________________________________
> > > >gnucash-user mailing list
> > > >[hidden email]
> > > >https://lists.gnucash.org/mailman/listinfo/gnucash-user
> > > >-----
> > > >Please remember to CC this list on all your replies.
> > > >You can do this by using Reply-To-List or Reply-All.
> > >
> > > _________________________________________________________________
> > > Express yourself - download free Windows Live Messenger themes!
> > >
> >http://clk.atdmt.com/MSN/go/msnnkwme0020000001msn/direct/01/?href=http://imagine-msn.com/themes/vibe/default.aspx?locale=en-us&source=hmtagline
> > >
> > >
> >
> >--
> >Robert Heller             -- 978-544-6933
> >Deepwoods Software        -- Linux Installation and Administration
> >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
> >[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
> >
>
> _________________________________________________________________
> Add fun gadgets and colorful themes to express yourself on Windows Live
> Spaces
> http://clk.atdmt.com/MSN/go/msnnkwsp0070000001msn/direct/01/?href=http://www.get.live.com/spaces/features
>
>
> _______________________________________________
> gnucash-user mailing list
> [hidden email]
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>
>
>
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Re: Three-way transaction, that I am not sure how to handle...

Jack Whale
Well, my ignorance of PayPal knows no bounds. I did my figurin based on how
he appeared to use it.
So, if Paypal, in general, has a positive balance, let's
1) call it an Asset
2) leave a positive balance after rebate

Attached is another stab.



>From: "Dawning Sky" <[hidden email]>
>To: "Jack Whale" <[hidden email]>
>CC: [hidden email], [hidden email]
>Subject: Re: Three-way transaction, that I am not sure how to handle...
>Date: Tue, 19 Sep 2006 10:04:47 -0700
>
>On 9/19/06, Jack Whale <[hidden email]> wrote:
>>In that case, and again I'm no accountant, I would enter it as shown in
>>the
>>screenshot that I have attached.
>>
>
>Two questions:
>
>1. Why do you treat paypal as a liability.  It's more like an asset in
>my opinion.
>2. I suppose what paypal does is that it first draws from the bank
>account $100, and then credit $1 rebate to the paypal account.
>
>DS
>
>
>>jw
>>
>>
>> >From: Robert Heller <[hidden email]>
>> >To: "Jack Whale" <[hidden email]>
>> >CC: [hidden email], Robert Heller <[hidden email]>
>> >Subject: RE: Three-way transaction, that I am not sure how to handle...
>> >Date: Tue, 19 Sep 2006 07:00:17 -0400
>> >
>> >At Mon, 18 Sep 2006 17:05:11 -0700 "Jack Whale" <[hidden email]>
>> >wrote:
>> >
>> > >
>> > > Nor am I an accountant.
>> > > I was wondering, though, whether PayPal does this all at once with
>>each
>> > > transaction or if it draws out of your checking account and pays the
>> >rebate,
>> > > say, once a month(or week, or day)?
>> >
>> >They record it as three sucessive transactions, for each debit card
>> >usage.  I guess if I had a suffiencient balance in my PayPal account, it
>> >would only be two transactions.
>> >
>> > > jw
>> > >
>> > > >From: Robert Heller <[hidden email]>
>> > > >To: Gnucash <[hidden email]>
>> > > >Subject: Three-way transaction, that I am not sure how to handle...
>> > > >Date: Mon, 18 Sep 2006 19:34:12 -0400
>> > > >
>> > > >I recently set myself up with a PayPal Debit card, which I am using
>>to
>> > > >pay for recurring business expenses.  Because I also have a PayPal
>> > > >button on my web site, I am getting 1% cash back.
>> > > >
>> > > >I generally don't carry a balance on my PayPal account, so the funds
>> >are
>> > > >drawn from my (business) checking account as a 'backup funding
>>source.
>> > > >
>> > > >Now what happens is this: PayPal performs three transations:
>> > > >
>> > > >1) Pays the charge.
>> > > >2) Transfers the needed amount from my checking account to cover the
>> > > >charge.
>> > > >3) Awards the cash-back amount to the PayPal account.
>> > > >
>> > > >Right now, I have two regular transactions, a transfer from my
>>checking
>> > > >account to the PayPal account and a transfer from the PayPal account
>>to
>> > > >the payee (I have not put in a transaction for the cash back yet).
>> > > >
>> > > >Does it make any sense to bundle the whole transaction sequence as a
>> > > >split transaction?  Or should I just have three transactions? If the
>> > > >former, I am not totally sure what the split transaction will look
>> >like.
>> > > >
>> > > >--
>> > > >Robert Heller             -- 978-544-6933
>> > > >Deepwoods Software        -- Linux Installation and Administration
>> > > >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
>> > > >[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
>> > > >
>> > > >_______________________________________________
>> > > >gnucash-user mailing list
>> > > >[hidden email]
>> > > >https://lists.gnucash.org/mailman/listinfo/gnucash-user
>> > > >-----
>> > > >Please remember to CC this list on all your replies.
>> > > >You can do this by using Reply-To-List or Reply-All.
>> > >
>> > > _________________________________________________________________
>> > > Express yourself - download free Windows Live Messenger themes!
>> > >
>> >http://clk.atdmt.com/MSN/go/msnnkwme0020000001msn/direct/01/?href=http://imagine-msn.com/themes/vibe/default.aspx?locale=en-us&source=hmtagline
>> > >
>> > >
>> >
>> >--
>> >Robert Heller             -- 978-544-6933
>> >Deepwoods Software        -- Linux Installation and Administration
>> >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
>> >[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
>> >
>>
>>_________________________________________________________________
>>Add fun gadgets and colorful themes to express yourself on Windows Live
>>Spaces
>>http://clk.atdmt.com/MSN/go/msnnkwsp0070000001msn/direct/01/?href=http://www.get.live.com/spaces/features
>>
>>
>>_______________________________________________
>>gnucash-user mailing list
>>[hidden email]
>>https://lists.gnucash.org/mailman/listinfo/gnucash-user
>>-----
>>Please remember to CC this list on all your replies.
>>You can do this by using Reply-To-List or Reply-All.
>>
>>
>>
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Re: Three-way transaction, that I am not sure how to handle...

Jack Whale
In reply to this post by Robert Heller
I hate when I do that! This time it IS attached


Well, my ignorance of PayPal knows no bounds. I did my figurin based on how
he appeared to use it.
So, if Paypal, in general, has a positive balance, let's
1) call it an Asset
2) leave a positive balance after rebate

Attached is another stab.


>From: "Dawning Sky" <[hidden email]>
>To: "Jack Whale" <[hidden email]>
>CC: [hidden email], [hidden email]
>Subject: Re: Three-way transaction, that I am not sure how to handle...
>Date: Tue, 19 Sep 2006 10:04:47 -0700
>
>On 9/19/06, Jack Whale <[hidden email]> wrote:
>>In that case, and again I'm no accountant, I would enter it as shown in
>>the
>>screenshot that I have attached.
>>
>
>Two questions:
>
>1. Why do you treat paypal as a liability.  It's more like an asset in
>my opinion.
>2. I suppose what paypal does is that it first draws from the bank
>account $100, and then credit $1 rebate to the paypal account.
>
>DS
>
>
>>jw
>>
>>
>> >From: Robert Heller <[hidden email]>
>> >To: "Jack Whale" <[hidden email]>
>> >CC: [hidden email], Robert Heller <[hidden email]>
>> >Subject: RE: Three-way transaction, that I am not sure how to handle...
>> >Date: Tue, 19 Sep 2006 07:00:17 -0400
>> >
>> >At Mon, 18 Sep 2006 17:05:11 -0700 "Jack Whale" <[hidden email]>
>> >wrote:
>> >
>> > >
>> > > Nor am I an accountant.
>> > > I was wondering, though, whether PayPal does this all at once with
>>each
>> > > transaction or if it draws out of your checking account and pays the
>> >rebate,
>> > > say, once a month(or week, or day)?
>> >
>> >They record it as three sucessive transactions, for each debit card
>> >usage.  I guess if I had a suffiencient balance in my PayPal account, it
>> >would only be two transactions.
>> >
>> > > jw
>> > >
>> > > >From: Robert Heller <[hidden email]>
>> > > >To: Gnucash <[hidden email]>
>> > > >Subject: Three-way transaction, that I am not sure how to handle...
>> > > >Date: Mon, 18 Sep 2006 19:34:12 -0400
>> > > >
>> > > >I recently set myself up with a PayPal Debit card, which I am using
>>to
>> > > >pay for recurring business expenses.  Because I also have a PayPal
>> > > >button on my web site, I am getting 1% cash back.
>> > > >
>> > > >I generally don't carry a balance on my PayPal account, so the funds
>> >are
>> > > >drawn from my (business) checking account as a 'backup funding
>>source.
>> > > >
>> > > >Now what happens is this: PayPal performs three transations:
>> > > >
>> > > >1) Pays the charge.
>> > > >2) Transfers the needed amount from my checking account to cover the
>> > > >charge.
>> > > >3) Awards the cash-back amount to the PayPal account.
>> > > >
>> > > >Right now, I have two regular transactions, a transfer from my
>>checking
>> > > >account to the PayPal account and a transfer from the PayPal account
>>to
>> > > >the payee (I have not put in a transaction for the cash back yet).
>> > > >
>> > > >Does it make any sense to bundle the whole transaction sequence as a
>> > > >split transaction?  Or should I just have three transactions? If the
>> > > >former, I am not totally sure what the split transaction will look
>> >like.
>> > > >
>> > > >--
>> > > >Robert Heller             -- 978-544-6933
>> > > >Deepwoods Software        -- Linux Installation and Administration
>> > > >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
>> > > >[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
>> > > >
>> > > >_______________________________________________
>> > > >gnucash-user mailing list
>> > > >[hidden email]
>> > > >https://lists.gnucash.org/mailman/listinfo/gnucash-user
>> > > >-----
>> > > >Please remember to CC this list on all your replies.
>> > > >You can do this by using Reply-To-List or Reply-All.
>> > >
>> > > _________________________________________________________________
>> > > Express yourself - download free Windows Live Messenger themes!
>> > >
>> >http://clk.atdmt.com/MSN/go/msnnkwme0020000001msn/direct/01/?href=http://imagine-msn.com/themes/vibe/default.aspx?locale=en-us&source=hmtagline
>> > >
>> > >
>> >
>> >--
>> >Robert Heller             -- 978-544-6933
>> >Deepwoods Software        -- Linux Installation and Administration
>> >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
>> >[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
>> >
>>
>>_________________________________________________________________
>>Add fun gadgets and colorful themes to express yourself on Windows Live
>>Spaces
>>http://clk.atdmt.com/MSN/go/msnnkwsp0070000001msn/direct/01/?href=http://www.get.live.com/spaces/features
>>
>>
>>_______________________________________________
>>gnucash-user mailing list
>>[hidden email]
>>https://lists.gnucash.org/mailman/listinfo/gnucash-user
>>-----
>>Please remember to CC this list on all your replies.
>>You can do this by using Reply-To-List or Reply-All.
>>
>>
>>
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Re: Three-way transaction, that I am not sure how to handle...

Sergey Okhapkin
I treat paypal like a regular bank account (in Asset category). Paypal allows
you to download transactions in qif format. Transfer between paypal and
checking account or CC is just a regular transfer between accounts.

On Tuesday 19 September 2006 16:47, Jack Whale wrote:

> I hate when I do that! This time it IS attached
>
>
> Well, my ignorance of PayPal knows no bounds. I did my figurin based on how
> he appeared to use it.
> So, if Paypal, in general, has a positive balance, let's
> 1) call it an Asset
> 2) leave a positive balance after rebate
>
> Attached is another stab.
>
> >From: "Dawning Sky" <[hidden email]>
> >To: "Jack Whale" <[hidden email]>
> >CC: [hidden email], [hidden email]
> >Subject: Re: Three-way transaction, that I am not sure how to handle...
> >Date: Tue, 19 Sep 2006 10:04:47 -0700
> >
> >On 9/19/06, Jack Whale <[hidden email]> wrote:
> >>In that case, and again I'm no accountant, I would enter it as shown in
> >>the
> >>screenshot that I have attached.
> >
> >Two questions:
> >
> >1. Why do you treat paypal as a liability.  It's more like an asset in
> >my opinion.
> >2. I suppose what paypal does is that it first draws from the bank
> >account $100, and then credit $1 rebate to the paypal account.
> >
> >DS
> >
> >>jw
> >>
> >> >From: Robert Heller <[hidden email]>
> >> >To: "Jack Whale" <[hidden email]>
> >> >CC: [hidden email], Robert Heller <[hidden email]>
> >> >Subject: RE: Three-way transaction, that I am not sure how to handle...
> >> >Date: Tue, 19 Sep 2006 07:00:17 -0400
> >> >
> >> >At Mon, 18 Sep 2006 17:05:11 -0700 "Jack Whale" <[hidden email]>
> >> >
> >> >wrote:
> >> > > Nor am I an accountant.
> >> > > I was wondering, though, whether PayPal does this all at once with
> >>
> >>each
> >>
> >> > > transaction or if it draws out of your checking account and pays the
> >> >
> >> >rebate,
> >> >
> >> > > say, once a month(or week, or day)?
> >> >
> >> >They record it as three sucessive transactions, for each debit card
> >> >usage.  I guess if I had a suffiencient balance in my PayPal account,
> >> > it would only be two transactions.
> >> >
> >> > > jw
> >> > >
> >> > > >From: Robert Heller <[hidden email]>
> >> > > >To: Gnucash <[hidden email]>
> >> > > >Subject: Three-way transaction, that I am not sure how to handle...
> >> > > >Date: Mon, 18 Sep 2006 19:34:12 -0400
> >> > > >
> >> > > >I recently set myself up with a PayPal Debit card, which I am using
> >>
> >>to
> >>
> >> > > >pay for recurring business expenses.  Because I also have a PayPal
> >> > > >button on my web site, I am getting 1% cash back.
> >> > > >
> >> > > >I generally don't carry a balance on my PayPal account, so the
> >> > > > funds
> >> >
> >> >are
> >> >
> >> > > >drawn from my (business) checking account as a 'backup funding
> >>
> >>source.
> >>
> >> > > >Now what happens is this: PayPal performs three transations:
> >> > > >
> >> > > >1) Pays the charge.
> >> > > >2) Transfers the needed amount from my checking account to cover
> >> > > > the charge.
> >> > > >3) Awards the cash-back amount to the PayPal account.
> >> > > >
> >> > > >Right now, I have two regular transactions, a transfer from my
> >>
> >>checking
> >>
> >> > > >account to the PayPal account and a transfer from the PayPal
> >> > > > account
> >>
> >>to
> >>
> >> > > >the payee (I have not put in a transaction for the cash back yet).
> >> > > >
> >> > > >Does it make any sense to bundle the whole transaction sequence as
> >> > > > a split transaction?  Or should I just have three transactions? If
> >> > > > the former, I am not totally sure what the split transaction will
> >> > > > look
> >> >
> >> >like.
> >> >
> >> > > >--
> >> > > >Robert Heller             -- 978-544-6933
> >> > > >Deepwoods Software        -- Linux Installation and Administration
> >> > > >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
> >> > > >[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
> >> > > >
> >> > > >_______________________________________________
> >> > > >gnucash-user mailing list
> >> > > >[hidden email]
> >> > > >https://lists.gnucash.org/mailman/listinfo/gnucash-user
> >> > > >-----
> >> > > >Please remember to CC this list on all your replies.
> >> > > >You can do this by using Reply-To-List or Reply-All.
> >> > >
> >> > > _________________________________________________________________
> >> > > Express yourself - download free Windows Live Messenger themes!
> >> >
> >> >http://clk.atdmt.com/MSN/go/msnnkwme0020000001msn/direct/01/?href=http:
> >> >//imagine-msn.com/themes/vibe/default.aspx?locale=en-us&source=hmtaglin
> >> >e
> >> >
> >> >
> >> >
> >> >--
> >> >Robert Heller             -- 978-544-6933
> >> >Deepwoods Software        -- Linux Installation and Administration
> >> >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
> >> >[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
> >>
> >>_________________________________________________________________
> >>Add fun gadgets and colorful themes to express yourself on Windows Live
> >>Spaces
> >>http://clk.atdmt.com/MSN/go/msnnkwsp0070000001msn/direct/01/?href=http://
> >>www.get.live.com/spaces/features
> >>
> >>
> >>_______________________________________________
> >>gnucash-user mailing list
> >>[hidden email]
> >>https://lists.gnucash.org/mailman/listinfo/gnucash-user
> >>-----
> >>Please remember to CC this list on all your replies.
> >>You can do this by using Reply-To-List or Reply-All.
>
> _________________________________________________________________
> Try the new Live Search today!
> http://imagine-windowslive.com/minisites/searchlaunch/?locale=en-us&FORM=WL
>MTAG
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Re: Three-way transaction, that I am not sure how to handle...

Robert Heller
In reply to this post by Dawning Sky
At Tue, 19 Sep 2006 10:04:47 -0700 "Dawning Sky" <[hidden email]> wrote:

>
> On 9/19/06, Jack Whale <[hidden email]> wrote:
> > In that case, and again I'm no accountant, I would enter it as shown in the
> > screenshot that I have attached.
> >
>
> Two questions:
>
> 1. Why do you treat paypal as a liability.  It's more like an asset in
> my opinion.
> 2. I suppose what paypal does is that it first draws from the bank
> account $100, and then credit $1 rebate to the paypal account.

Yes, paypal shows three transactions:

1) payment of charge on the debit card (eg $100)
2) transfer from bank account to paypal acount (eg $100)
3) credit to paypal account of 'cash back' (eg $1)

When all is said and done, the charge has been paid in full, the bank
account is reduced by the full charge, and the paypal account has gained
the cash back amount.

>
> DS
>
>
> > jw
> >
> >
> > >From: Robert Heller <[hidden email]>
> > >To: "Jack Whale" <[hidden email]>
> > >CC: [hidden email], Robert Heller <[hidden email]>
> > >Subject: RE: Three-way transaction, that I am not sure how to handle...
> > >Date: Tue, 19 Sep 2006 07:00:17 -0400
> > >
> > >At Mon, 18 Sep 2006 17:05:11 -0700 "Jack Whale" <[hidden email]>
> > >wrote:
> > >
> > > >
> > > > Nor am I an accountant.
> > > > I was wondering, though, whether PayPal does this all at once with each
> > > > transaction or if it draws out of your checking account and pays the
> > >rebate,
> > > > say, once a month(or week, or day)?
> > >
> > >They record it as three sucessive transactions, for each debit card
> > >usage.  I guess if I had a suffiencient balance in my PayPal account, it
> > >would only be two transactions.
> > >
> > > > jw
> > > >
> > > > >From: Robert Heller <[hidden email]>
> > > > >To: Gnucash <[hidden email]>
> > > > >Subject: Three-way transaction, that I am not sure how to handle...
> > > > >Date: Mon, 18 Sep 2006 19:34:12 -0400
> > > > >
> > > > >I recently set myself up with a PayPal Debit card, which I am using to
> > > > >pay for recurring business expenses.  Because I also have a PayPal
> > > > >button on my web site, I am getting 1% cash back.
> > > > >
> > > > >I generally don't carry a balance on my PayPal account, so the funds
> > >are
> > > > >drawn from my (business) checking account as a 'backup funding source.
> > > > >
> > > > >Now what happens is this: PayPal performs three transations:
> > > > >
> > > > >1) Pays the charge.
> > > > >2) Transfers the needed amount from my checking account to cover the
> > > > >charge.
> > > > >3) Awards the cash-back amount to the PayPal account.
> > > > >
> > > > >Right now, I have two regular transactions, a transfer from my checking
> > > > >account to the PayPal account and a transfer from the PayPal account to
> > > > >the payee (I have not put in a transaction for the cash back yet).
> > > > >
> > > > >Does it make any sense to bundle the whole transaction sequence as a
> > > > >split transaction?  Or should I just have three transactions? If the
> > > > >former, I am not totally sure what the split transaction will look
> > >like.
> > > > >
> > > > >--
> > > > >Robert Heller             -- 978-544-6933
> > > > >Deepwoods Software        -- Linux Installation and Administration
> > > > >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
> > > > >[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
> > > > >
> > > > >_______________________________________________
> > > > >gnucash-user mailing list
> > > > >[hidden email]
> > > > >https://lists.gnucash.org/mailman/listinfo/gnucash-user
> > > > >-----
> > > > >Please remember to CC this list on all your replies.
> > > > >You can do this by using Reply-To-List or Reply-All.
> > > >
> > > > _________________________________________________________________
> > > > Express yourself - download free Windows Live Messenger themes!
> > > >
> > >http://clk.atdmt.com/MSN/go/msnnkwme0020000001msn/direct/01/?href=http://imagine-msn.com/themes/vibe/default.aspx?locale=en-us&source=hmtagline
> > > >
> > > >
> > >
> > >--
> > >Robert Heller             -- 978-544-6933
> > >Deepwoods Software        -- Linux Installation and Administration
> > >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
> > >[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
> > >
> >
> > _________________________________________________________________
> > Add fun gadgets and colorful themes to express yourself on Windows Live
> > Spaces
> > http://clk.atdmt.com/MSN/go/msnnkwsp0070000001msn/direct/01/?href=http://www.get.live.com/spaces/features
> >
> >
> > _______________________________________________
> > gnucash-user mailing list
> > [hidden email]
> > https://lists.gnucash.org/mailman/listinfo/gnucash-user
> > -----
> > Please remember to CC this list on all your replies.
> > You can do this by using Reply-To-List or Reply-All.
> >
> >
> >
>
>        

--
Robert Heller             -- 978-544-6933
Deepwoods Software        -- Linux Installation and Administration
http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
[hidden email]       -- Contract Programming: C/C++, Tcl/Tk
                                                                                                                       
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-----
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Robert Heller                      -- 978-544-6933
Deepwoods Software        -- Download the Model Railroad System
http://www.deepsoft.com/  -- Binaries for Linux and MS-Windows
heller@deepsoft.com        -- http://www.deepsoft.com/ModelRailroadSystem/