On 08/06/2018 11:15 PM, Baldero Mendoza wrote:
> Wow, what a great help group! Lots of great advice from many
> knowledgeable people.
>
> I settled on making an expense account out of google play
> ("Google_play_stuff") and matching it to a checking account, skipping
> the credit card part since, with me, that is always transitory and
> instantaneous anyway. (Hope that doesn't bite me down the road.)
>
> Maybe it's unimportant but I do like not having those red negative
> numbers on the accounts, even if everything does seem to balance.
>
> Thanks everybody! Also, I hope I did the "cc" thing correctly.And another way to treat Google Play -- like a debit card that directly hits the checking! > On Mon, Aug 6, 2018 at 5:50 PM, Stephen M. Butler <kg...@arrl.net> wrote: >> On 08/06/2018 02:27 PM, Adrien Monteleone wrote: >>> Certainly, if you have a card tied to the account and you are charged for >>> each purchase on the spot, then no need for the mess I described. >>> >>> When you purchase: >>> >>> Dr. Expenses:Entertainment (software, whatever) >>> Cr. Credit Card (the one that will be charged) >>> >>> Use ‘Google Play’ as the Description for the transaction and the actual >>> title purchased as either the Note or the Memo on the expense split. >>> >>> When entering expenses, I generally use the Description field for the >>> ‘Vendor’ being paid. (who I purchased from) >>> >>> Otherwise, when you pay the credit card bill, that’s like any other >>> situation, as Google Play is no longer part of the equation as Stephen >>> noted. >>> >>> Regards, >>> Adrien >> That's the "fun" side of accounting. So many ways to do the same >> thing. Only your CPA knows for sure how you should do it -- and that's >> because it will be how s/he wants it done. >> >>>> On Aug 6, 2018, at 4:20 PM, Stephen M. Butler <kg...@arrl.net> wrote: >>>> >>>> On 08/06/2018 01:59 PM, Baldero Mendoza wrote: >>>>> Please be patient with me - brand new to this. >>>>> >>>>> Household financial stuff. I want to post a "google play" purchase. >>>>> Should I post as an expense or a liability? >>>>> >>>>> I have accounts open for things like "electricity" and that seems to >>>>> work just fine, but "google play" looks like it works sort of like a >>>>> credit card, so I listed it under "liabilities", and that seems to >>>>> work too. I made the connected account "checking" and it all seems to >>>>> balance and work. >>>>> >>>>> However, what bothers me is that the "google play" entry under >>>>> "liabilities" is listed as a red negative number. So I have two red >>>>> negative numbers listed now, one under "liabilities" and one under >>>>> "google play". Everything balances, so is it okay or should I place >>>>> "google play" purchases as "expenses"? (I just started gnucash so >>>>> there aren't any credit card or debit card purchases yet.) The >>>>> "expenses" stuff gets listed as black positive numbers even though >>>>> they're an outflow of money just like the "google play" stuff under >>>>> "liabilities". Maybe it's optional and can be done either way? >>>>> Confusing. >>>>> >>>>> Thank you everybody! >>>>> _______________________________________________ >>>> All of us were brand new at one point. I'm not much past that stage >>>> either. >>>> >>>> I'm not a CPA nor a book-keeper (though am married to an accountant and >>>> have written accounting software), so this is just my opinion. >>>> >>>> 1. I would make an expense category for "Software" rather than tying it >>>> to "Google Play" -- but that's just my approach. Would make it an >>>> expense though. >>>> >>>> 2. The Google Play items (at least some of mine) get charged off to >>>> your credit card. That would be a Liability account (short-term). >>>> >>>> 3. So, the two sides for the transaction (purchase) would be the >>>> expense (Software or Google Play) and CreditCardClearingAccount >>>> (Liability). >>>> >>>> 4. When you pay off the credit card, the transaction would be the >>>> CreditCardClearingAccount (to reduce toward zero) and the Checking >>>> Account (Asset) from which the payment was made. >>>> >>>> Hope this helps clarify your thinking. -- Stephen M Butler, PMP, PSM stephen.m.butle...@gmail.com kg...@arrl.net 253-350-0166 ------------------------------------------- GnuPG Fingerprint: 8A25 9726 D439 758D D846 E5D4 282A 5477 0385 81D8 _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
