No private email please. I had detailed the posting of AP Bill in the future.
and post a bill, posting date is *01/12/2020* 01/12/2020 Use Tax due Expense:Use Tax $15 A/Payable -$15 and in December 2020, clear the AP bill as usual. On Tue, 25 Feb 2020, 4:55 am Brandon Captain, <caib...@gmail.com> wrote: > Thank you for your response, I still have a few questions. > > The problem that I see with your approach is that you've recorded the Use > Tax as an expense at the same time that you've made the purchase, but it > isn't an expense at that time. It's not an expense until you've actually > paid it, and in my case it won't even be the same year - purchases in all > of 2020 that I owe use tax on will be paid in March of 2021, and so on, > every year. Inflating my expense account with money that I haven't spent > yet is not representative of reality, and if I were to do it that way I > would have to remember to subtract that amount when reporting what my > *actual* expenses were. > > The best I've figured is the original plan, except (as you've suggested) > to make my "future expenses" account of type Liability instead of type AP. > So to be able to record the use tax as expense at a *future* time that we > actually pay it, we have to create a sort of dummy account to hold it in > until then, We can't stick it in Expenses because... it's not yet an > expense. So I add a split to the original purchase transaction by adding > the use tax amount owed as going from "Liabilities:Use Tax" (a credit) to > the dummy account "Future Expense:Use Tax" (a debit). The only problem is > that "Future Expense:Use Tax" now shows a negative. Then later when I > actually pay the use tax, I create a transaction on the proper day that I > pay the total sum of use tax I owe on all my purchases: I credit whatever > asset account I pay it with and debit the "Liabilities:Use Tax", then add a > split to it that credits "Future Expenses:Use Tax" and debits Expenses. > Thus bringing the "Future Expenses:Use Tax" and "Liabilities:Use Tax" to > zero, and raising Expenses on the proper date. "Future Expenses" has to be > a top-level account, because if we stick it into "Liabilities" then it > "Liabilities" is just going to balance those two figured out to zero. > > Thoughts? > > > > On Sun, Feb 23, 2020 at 6:06 PM Christopher Lam <christopher....@gmail.com> > wrote: > >> For your use case you could use AP accounts and bills. Let's assume your >> use tax is 15% to be cleared in December 2020. >> >> I'd think, during purchase >> 24/02/2020 Buy something, will also need to pay use tax >> Expense:MI Use Tax +$100 >> Asset:Bank -$100 >> >> and post a bill, posting date is 01/12/2020 >> 31/12/2020 Use Tax due >> Expense:Use Tax $15 >> A/Payable -$15 >> >> and in December 2020, clear the AP bill as usual. >> >> --- >> >> You could also do it manually without using AP/AR accounts >> 31/12/2020 Use Tax due >> Expense:Use Tax $15 >> Liability:Future Use Tax -$15 >> >> and in December 2020, clear the Liability account. >> >> --- >> >> > Other payable accounts you create should be of type ‘liability’ and >> you can manually enter stuff there all you want. (there can be only one >> account of either *type* AP or AR) >> >> You can actually have as many AP/AR accounts as you like, in different >> currencies too. >> >> On Sun, 23 Feb 2020 at 01:47, Brandon Captain <caib...@gmail.com> wrote: >> >>> I make purchases for which I owe state Use Tax on. It's important for me >>> to >>> record the Use Tax liability at the time it becomes a liability, but only >>> record it as an expense at the time that I pay it. >>> >>> I have several accounts for this, but the important ones are: >>> >>> * "Future Expense(A/P):MI Use Tax", a top-level Accounts Payable account. >>> * "Expenses:MI Use Tax" >>> * "Liabilities:MI Use Tax" >>> >>> When I make a purchase that I owe use tax on, I make a split transaction: >>> * decrease an asset account by the amount I paid, and increase the >>> expense >>> account by the amount I paid (not including the unpaid use tax). >>> * increase the "Liabilities:MI Use Tax" and increase "Future >>> Expense(A/P):MI Use Tax" >>> >>> In the next year when I remit the Use Tax to my state, I create another >>> split transaction for the amount I pay in use tax: >>> * decrease whatever asset account, and decrease "Liabilities:MI Use Tax" >>> * decrease "Future Expense(A/P):MI Use Tax", and increase "Expenses:MI >>> Use >>> Tax". >>> >>> This method allows me to keep the Use Tax that I pay recorded in the >>> proper >>> year - I can't record it as an expense at the time I buy the item, >>> because >>> I haven't paid that portion of it yet, and I don't want to have to >>> remember >>> that come next tax season. >>> >>> I am not using the default "Liabilities:Accounts Payable" account because >>> it would negate "Liabilities:MI Use Tax", and would always look like I >>> have >>> a zero tax liability which would be incorrect. >>> >>> So this setup seems to work, but I'm unsure about the GnuCash >>> documentation >>> which says: "Transactions involving an Accounts Payable account should >>> not >>> be added, changed or deleted in any way other than by using post/unpost >>> bill/invoice/voucher or process payment" >>> >>> I don't use the payment system (yet), but why is it such a problem to >>> manually enter A/P transactions? >>> >>> Is it really that important that I use the bill/payment system for these >>> transactions? And once I do so, can I safely split them afterward? >>> >>> Thank you >>> _______________________________________________ >>> gnucash-user mailing list >>> gnucash-user@gnucash.org >>> To update your subscription preferences or to unsubscribe: >>> https://lists.gnucash.org/mailman/listinfo/gnucash-user >>> 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. >>> >> _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user 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.