> On Dec 15, 2017, at 7:51 AM, Derek Atkins <warl...@mit.edu> wrote: > > Adrien, > > Adrien Monteleone <adrien.montele...@gmail.com> writes: > >> Sorry, allow me to rephrase, when do I acquire the pre-paid expense ASSET? > > Can you please explain what you mean by a "pre-paid expense asset"? Is > it an Expense? Or is it an Asset? > > Could you give a concrete example of something that is a "pre-paid > expense asset"? > > Sorry for being dense, but I still don't grok what you're trying to do > or how this is mapping into a real-world transaction.
Suppose you have an insurance policy that lets you either pay monthly or for a whole year, with the latter getting a 10% discount, and that even if you pay for the whole year you can cancel and get a pro-rata refund. The annual pre-payment is booked as an asset called "pre-paid expense". Each month you credit 1/12 of the annual payment to expenses:insurance. If 3 months in you cancel the policy, the refund creates a transfer transaction back to the bank account. Regards, John Ralls _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org 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.
