On 3/31/2021 3:45 AM, Mahon Finbar wrote:
Thanks both.
Thanks for the 'accounting' way of doing it and I will try some of the
proposals.
My case is a little bit different; just to clarify - I pay a fixed
amount per month, as many utilities suppliers offer, but, my supplier
cannot (yet) handle the reduction from a government subsidy, on age
grounds, so the authorities pay that monthly. Therefore I have two
transactions, paying the fixed amount and receiving the subsidy as an
"income" event. Slight wrinkle, the subsidy is, for reasons I do not
understand, different every month, there is a higher and a lower sum
every second month. 😕
a) Does your jurisdiction consider that subsidy income? << do you need
to report that as income? >> If not (and I suspect not)
b) Look at the expense side of this. I am guessing, when you send this
utility supplier that fixed monthly payment you are recording THAT as
"utility expense". But then somebody (the government agency) reimbursed
part of that to you. Now IF your government and this utility had been
able to arrange your age related reduction in charge for the utility
service, what would you have seen? You'd have had a lesser monthly
payment to make, right?
   So treat this reimbursement you get not as income but as a
reduction in utility expense. You debit cash for the subsidy and credit
utility expense.
Michael D Novack
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