When you receive the payment from the customer it is income not an expense or liability but when you receive it, you also create a liability that you will have to pay to the insurance company at some future time. You would record this with a transaction with four splits as follows:
Asset:Current Assets:Checking Db xxxx Income Cr xxxx Expense:Insurance Db xxxx Liability:Insurance Cr xxxx The first 2 lines record you receiving the money from the client. The second 2 lines records the expense when it is incurred, i.e. when you offer the client insurance coverage and the creation of the liability to pay the insurance company. Then when you pay the insurance company, you reduce the liability: Liability:Insurance Db xxxx Asset:Current Assets:Checking Cr xxxx David Cousens ----- David Cousens -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html _______________________________________________ gnucash-user mailing list [email protected] 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.
