michael
for Bursary accounting purposes you can use the liability option
1. Bursary account funding from the donor
* Cr Liability: Bursary:Donor 1 : $1000
* Dr Assets: Bank : $ 1000
2. Payment to student invoice
* Dr Assets: Bank : $125 (student pays)
* Cr Income: Fees: $375
* Dr Liability: Bursary: Donor 1: $250 (bursary pays)
Saludos Cordiales
Murugan
________________________________
From: Michael Hendry <[email protected]>
Sent: Wednesday, May 31, 2023 6:00 PM
To: Vincent Dawans <[email protected]>; Murugan Muruganandam
<[email protected]>; [email protected]
<[email protected]>
Cc: Gnucash userlist <[email protected]>
Subject: Re: [GNC] Dealing with discounts when not using Business Features
On 31 May 2023, at 20:46, Vincent Dawans <[email protected]> wrote:
>
> Personally I would create your Discounts and Bursary accounts as income
> accounts, possibly even as subaccounts of your main income account for that
> product/service. Yes they will only have rebates (debits) in them, but they
> are not an expense, they are a form of reduced income (by choice). The
> distinction is important in terms of "true accounting representation". Think
> of it with an extreme case. If I said I charge $1 million for this email
> advice, but then give you a $999,999.99 discount, as a financial analyst,
> would you want to see a P&L with a $1 million income and a $999,999.99
> expense or just a $0.01 income and zero expenses? Because you control each
> side here (the price charged and the rebate), they are one and the same, so
> it would be the second scenario.
>
> By it's OK to put it as a "debit" income account, you still have the info in
> the details of the accounts and can get it out in a report to show how much
> income you forfeited, but a high-level P&L will give you the correct income
> (with the rebate) instead of the extra expense.
>
> Sincerely,
>
> Vincent Dawans
Thanks, Vincent, Murugan and Stan.
As I said, I haven’t been using the Business Features because they’re an added
complication, and because our accounts are kept on a cash basis.
A Bursary is a grant made to assist a talented student who might otherwise be
unable to afford a course. It’s doesn’t usually involve competition (like a
scholarship), and is intended to encourage a talented individual to take up a
course s/he couldn’t otherwise afford.
I’ll look further into Vincent’s and Stan’s suggestions, as I don’t think my
method of receiving the students’ payments into the Income: Course Fees account
and then topping them up from Expense: Discount and Expense:Bursary to reach
the fee that would actually be due will work.
Regards,
Michael
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