Yes! Thanks to dwmbeancounter.com I now even do understand what you mean. What seems to make LSMB especially useful for us is the implementation of Projects and Departments with the possibility of creating a balance per department.
Now there's one conceptual thing that I am still trying to figure out. And that's borrowing between departments. Our departments will constantly borrow cash from each others wallets and I have no idea how to implement that on de COA, while being able to constantly keep track of their balances for each department. Of course I could make liabilities and asset accounts that would look like: 1210 borrowed to dept 1 1220 borrowed to dept 2 2310 borrowed from dept 1 2320 borrowed from dept 2 so that the balance would be reflected on each department's balance sheet, but of course would be zero on the company's balance sheet. I feel however as if it wouldn't be justifiable to use a company's asset (liability) account to reflect money borrowed by one department to (from) one of the other departments. I hope my explanation of what I desire was clear enough. Is there any ready accounting solution for this? Thanks again, ario On Wed, 2010-06-09 at 00:34 -0700, Chris Travers wrote: > On Tue, Jun 8, 2010 at 10:08 PM, ario <[email protected]> wrote: > > Good day, > > > > I've got just newly involved in both accounting and ledgersmb, so I'm > > afraid this won't be my last posting to this list :) > > > > For a farm that's growing rice among other products I'm trying to set up > > an accounting system and I chose for LedgerSMB. > > > > So here's the deal: > > For the preparation of seedlings, somebody is plowing a seedbed where > > the seeds will be sown for later transplantation in the rice field. > > For this I created the account: > > > > 1. 5220 cogs/madboat seedbed > > > > As I understand from my newly acquired knowledge about accounting, > > things that add to assets are 'debited' and items/money that go out of > > the system are 'credited' in the books. > > That's correct. > > > So I was considering entering the following in the general ledger: > > > > Department: rice field 1 > > Project: first cropping 2010 > > account debit credit > > 5220 400 > This is an expense, right? It should be a debit. > > > 2100 400 > This is a liability, right? Credit is right. > > > but I'm afraid this doesn't make sense, because whenever I push the > > 'update' button, it adds a new line with account nr. 1010 in the > > transaction window. > > > > I was thinking along the line: plowing (5220) costs money (400) so > > that's put on the credit side, accounts payable (2100) will increase the > > liabilities (400) so that's also put on the credit side. However, I > > don't think an entry like this will balance. > > Right. Because neither of these are assets. Your liability side > should go on the credit, and the balancing expense side goes in as a > debit. > > Best Wishes, > Chris Travers > > ------------------------------------------------------------------------------ > ThinkGeek and WIRED's GeekDad team up for the Ultimate > GeekDad Father's Day Giveaway. ONE MASSIVE PRIZE to the > lucky parental unit. See the prize list and enter to win: > http://p.sf.net/sfu/thinkgeek-promo > _______________________________________________ > Ledger-smb-users mailing list > [email protected] > https://lists.sourceforge.net/lists/listinfo/ledger-smb-users ------------------------------------------------------------------------------ ThinkGeek and WIRED's GeekDad team up for the Ultimate GeekDad Father's Day Giveaway. ONE MASSIVE PRIZE to the lucky parental unit. See the prize list and enter to win: http://p.sf.net/sfu/thinkgeek-promo _______________________________________________ Ledger-smb-users mailing list [email protected] https://lists.sourceforge.net/lists/listinfo/ledger-smb-users
