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 like to treat the initial payment as a credit to insurer's A/P account then each month create a bill for the amount payable. Is this the correct way to handle such a transaction? Assuming it is, how do I credit the amount due from whatever account I posted the initial payment to? In practice we pay the initial payment in February, the start of our paolicy year. Usually, in April or May, the initial payment is exhaused and we have to send more money to pay that month's bill. I'm not at all clear on how to post this situation. I'd appreciate knowing how to do this in GNUCash as well as any comments on the applicable general accounting rules. In Quickbooks I could debit or credit A/R or A/P diectly and selects the customer or vendor required. Since that capabiity does not appear to be available in GNUCash, how do I post it? Many thanks for your already generous help. -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html _______________________________________________ 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.
