On 2/4/2018 1:21 AM, Christopher Lam wrote:
Looks nice. My main concern with these "shadow accounts" is that they will,
by default, be counted in the Net worth reports, income reports, etc, and
must be manually deselected every time.

In my view budget allocations are technically "outside the books" and must
therefore ideally be recorded in ways that don't affect the everyday data
and reports.

The problems people have been discussing are really "work flow" and "how done" issues.

a) As noted in the second paragraph, technically "outside the books". So ONE solution is to do just that, a separate set of "books" (gnucash can handle many). That obviously would mean no effect on reports run against the regular books. And of course that could be using the built in budget facility.

b) But it seems most would prefer not having to switch books to record the effect on budget items resulting from the real transactions. I can think of MANY ways to put the "budget" accounts so that they would have no net effect on reports, total of the parent standing accounts (asset, liability, equity). What I can't see is any easy way to "automate" because IN GENERAL users, especially non-organizational users, will be ADJUSTING budget allocations on the fly as needed << don't need a vote of some board to authorize that >>

c) Some people seem to be confused about "liabilities" thinking that they NECESSARILY represent an actual debt (the most common use) instead of possibly representing a CONDITIONAL debt. I will note that some of the things I have mentioned in this context (especially for non-profit orgs) may be changing << I have heard that new accounting practice will allow some restricted funds not to be considered liabilities until/unless something prevents their use for the intended purpose instead of as now from the get go as a conditional debt* >>

d) IF I wanted to put the "envelopes" in my main books, I could put them under assets, liabilities, or equity WITHOUT affecting the totals of any of those. Thus:
       Budget     (the parent)
             Total allocated funds    (debit side?)
               Allocations                   (credit side?)
                   Each individual envelope
<< all that matters is that Total Allocated Funds and Allocations be on opposite sides --- which means the total for the parent "Budget" will be ZERO >>

Michael D Novack

* In my practical experience, donors of conditional gifts or grants often will agree to a change of use, extension of time to use, etc. But I have never had to deal with governmental grants, etc. which I suspect would be less forgiving. But I also have practical experience where ALL there is is budget accounting << the organization or committee has no funds in hand --- the budget represents what will be reimbursed if the committee votes to authorize an expenditure and some committee member goes out and spends the money --- and then submits the receipts to the town treasurer for reimbursement. The committee must track "how much do we have left to spend" or somebody will be out of pocket >>

gnucash-user mailing list
To update your subscription preferences or to unsubscribe:
If you are using Nabble or Gmane, please see 
https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.

Reply via email to