Hi Michael, Thank you very much for your clarification. As I just responded to David, I probably need to rethink thoroughly how the existing invoice system could be applied for my needs.
Regards, Sergey On Tue, May 30, 2023 at 3:31 PM Michael or Penny Novack < stepbystepf...@comcast.net> wrote: > On 5/29/2023 5:44 PM, Sergey Mende wrote: > > Hi there, > > I am trying to figure out if the existing customer invoice system is > > suitable for my needs. > > For simplicity, let's say I have the following accounts: > > > > Current (Bank) > > Undetermined Income (Income, for bank account transactions just imported > > from the online banking) > > Deferred Income (Income, used at invoice creation to track invoices that > > are posted and sent to the customers but not paid yet) > > Income (for invoices that got paid, so the payment actually received as a > > bank transaction and processed as a payment of an invoice) > > Receivable (A/Receivable, for tracking invoices) > > No, sorry, but the invoices are part of the business system and only for > use with accrual basis accounting. Can't be used for cash basis > accounting, which is what I sense you are thinking about when you see > ":receivables" as "deferred". You will been to familiarize yourself of > the differences between accrual basis accounting and cash basis accounting. > > In accrual based accounting, the "income" is earned when the invoice is > sent, the customer legally obligated to pay and the amount goes into an > asset account "receivables". When the customer later actually pays (you > mark it paid) that gets transferred to cash (you bank account). If you > don't think of "receivables" as real money, look up what a "factor" > does. In other words, "receivables" might be collateral for a loan or > even sold. > > Michael D Novack > > PS: When some of us are using the term "deferred income" it is in the > context of tax sheltered retirement accounts. Things like IRAs and 401Ks > (but money going into Roth IRA is after tax, would not be deferred > income). Thus I might have a 401K through work allowing me to > contribute before tax income up to the regulated limit with the > employer matching up to 3% of salary. In other words, were I selecting > 5% of my salary to go into the 401K THAT would be deferred income and so > would the 3% matched by the employer. Not escaping income tax, just > deferring it till after retirement as distributions are taken form the > 401K. > > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
