On 12/15/2018 4:06 PM, tbalaban wrote:
My Company pays an initial payment to our insurer at the beginning of each
policy year. As we incur insurance costs based on event participants, that
initial payment is charged. After it is exhausted we get a monthly bill for
the amount due. In no case do
Stan,
Assuming one uses a bank at all...
But even then, if you record the pre-paid expense when you get the bill 2
months early, your assets are off. (though not inflated, sorry, that was the
wrong term)
You’re showing you have more pre-paid expenses and less money in the bank than
you
payments
> so I'm pretty sure I can just expense them.
>
> Best,
> Tom
>
> -- Original Message --
> From: "Adrien Monteleone"
> To: "Gnucash Users"
> Sent: 12/15/2018 4:41:12 PM
> Subject: Re: [GNC] How To Handle Prepayment
> From: Adrien Monteleone
> I receive a bill about a month in advance of the due date every six
months for auto insurance. If I pay that bill early, or on time, I am
gaining a ?pre-paid? asset to be used up over the next six months. My
problem wasn?t using the bills feature to handle this, or
there is anything prepaid regarding these subsequent
payments so I'm pretty sure I can just expense them.
Best,
Tom
-- Original Message --
From: "Adrien Monteleone"
To: "Gnucash Users"
Sent: 12/15/2018 4:41:12 PM
Subject: Re: [GNC] How To Handle Prepayments
I’m n
if they don't. ;-))
Best,
Tom
-- Original Message --
From: "elvis"
To: gnucash-user@gnucash.org
Sent: 12/15/2018 5:50:49 PM
Subject: Re: [GNC] How To Handle Prepayments
Unless you really need to do accrual accounting, then don't. If you are never
getting it back, it is not much o
Unless you really need to do accrual accounting, then don't. If you are
never getting it back, it is not much of an asset.
Put it though as Insurance Expense, Initial Payment, Payment 2 etc.
Accounting is there to help you, not make more work to make it "correct".
On 16/12/18 7:06 am,
I’m not sure I’m entirely following the timing exactly, but many insurances,
and it looks like your’s falls in this category, are pre-paid.
Thus they are assets until they are ‘used’.
So when you make the initial payment:
Dr. Assets:Current Assets:Pre-Paid Assets:Insurance
Cr. Assets:Current
My Company pays an initial payment to our insurer at the beginning of each
policy year. As we incur insurance costs based on event participants, that
initial payment is charged. After it is exhausted we get a monthly bill for
the amount due. In no case do we ever get the initial payment back.
I'd
