On Thu, Oct 10, 2019 at 01:47:58AM -0700, psionl0 wrote in
<[email protected]>:
I think you will find that every accounting package in the world includes a
sixth category for bank accounts. Probably for the reason you give. If a
bank account gets overdrawn then you would suddenly have to change it from
an asset account to a liability account.
You are right that what you describe has nothing to do with equity.
If I understand you correctly, Company 1 and Company 2 can change from
being a net creditor to a net debtor and vice versa at any time. If this is
the case then you really need to leave an audit trail rather than rely on
sed to create a report that doesn't exist for your business.
This just means that at the appropriate time (like when you have to submit
a report to the tax man), you need to make an adjusting entry. For example,
If Company 1 has a net liability account balance of +$500 (meaning that it
has become a net asset) then you would make the following entry :
2019/10/10 * Company 1
Liabilities:Accounts Payable $ -500.00
Assets:Accounts Receivable $ 500.00
I am sure that such adjusting entries would only have to be made a couple
of times per year and don't represent any hardship for you.
Using your input and suggestions, I think I've come up with a workable
solution for me: I create the account twice, once under the Assets accounts
and once under the Liabilities accounts. I then define an Alias which I
use to do all my bookings to these accounts, in a way I guess this could
be seen as your sixth account category. This way I don't have to figure
out if I have a credit or a debit position after each mutation. When time
comes to make my "official" report, which is only once a year for tax
purposes really, I just ensure that, based on the balance of that account,
the alias is pointing to one account or the other. This gives me exactly
what I want in my report.
It would be nice if this could be done automatically by ledger, perhaps by
using some sort of account command directive, but that would really be
icing on the cake. For now, I consider my question answered and case
closed!
Thank you again for your help!
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