On Fri, Aug 07, 2009 at 08:44:07PM -0600, Travis B. Hartwell wrote:
> My wife and I are starting to use coupons and other such discounts to try to
> save money.  I would like to track how much we are saving by using such
> things.  The question, then, is how would I form a ledger entry to properly
> track it?
> 
> drewr on #ledger suggested that I make coupons an asset.  I'm not entirely
> sure how to do this right to handle the double-entry accounting.  Here's a
> thought, but I don't know if it is conceptually clean:
> 
> 2009/08/07  Grocery Store
>      Expenses:Food                 $15.00
>      Expenses:Food                 $-5.00
>      Assets:Coupons                 $5.00
>      Assets:Coupons                $-5.00
>      Assets:Checking              $-10.00
> 
> So, at the time of the transaction, the coupon becomes an asset to me --
> since it really isn't an asset until I can use it.  This way, the food
> expense is correct and the coupons balance out.
> 
> Does this make sense or is there a better way?

I think you're on the right track with the Asset:Coupons account.  I'd just
"pay" for part of the purchase with a coupon, though, something like this:

2009/08/07 Grocery Store
  Expenses:Food                 $15.00
  Assets:Checking              $-10.00
  Assets:Coupons                $-5.00

It does depend on what you want your Expenses:Food account to represent --
how much cash you spent on food, or how much worth of food you got.  If you
want the latter, I'd be inclined to track "discounts received", perhaps:

  Expenses:Food                $-5.00
  Income:Discounts

Certainly, self-balancing an account seems like a really bad idea, from a
double-entry point of view.

I'm sure whole books have been written by accountants on the various means
of keeping track of discounts and coupons received; perhaps Google could
provide...

- Matt

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