It all depends on whether the buyer or seller is paying the shipping costs.
If the seller is paying the shipping costs then it is an expense to the seller but in this case the shipping costs are not explicitly included in the purchase price and would be paid. For a business this could be recorded as Asset:Mus. Inst. Cr 800.00 Expenses:CoGS Dr 800.00 Asset:Bank Account Dr 1241.00 Income:Sales Mus Inst Cr 1241.00 when the funds are received Asset:Bank account Cr 35.49 Expense:Shipping Dr 35.49 when shipping is paid (these could be combined if simultaneous but ideally better to keep the splits with memo annotations) and the nett profit on the sale is 1241-800-35.49 = 405.51 If the buyer is paying the shipping costs, then the purchase price should have included the shipping over and above the sale price of the instrument itself and the seller cannot claim the shipping as an expense and part of the money received pays for the shipping. For this case it could be recorded as Asset Bank Dr 1178.51 Asset:Mus. Inst. Cr 800.00 Expenses:CoGS Dr 800.00 Income:Sales Cr 1178.51 Asset:Bank Dr 35.49 Liability:Shipping Cr 35.49 when the funds are received and when the shipping is paid Asset:Bank Cr 35.49 Liability:Shipping Dr 35.49 and in this case the net profit is 1178.51-800 = 478.51 Which of these it is appropriate should be clear from the sales invoice. David Cousens On Thu, 2024-11-21 at 20:52 -0600, R Losey wrote: > Expense accounts, because they are usually only increased, just have > Expenses for debits. The credit is called a "Rebate". I don't know if > you > meant to make that account an expense account. > > I don't see an Income anywhere in the list. > > Your asset should have gone down by 800 EUR, as you did. The gain in > this > sale is 414 EUR, of which the shipping should be an expense, and the > Income > will be 1214 minus the shipping cost, right? > > > On Thu, Nov 21, 2024 at 3:53 PM Boniforti Flavio > <bonifort...@gmail.com> > wrote: > > > Hi all. > > > > I've just sold one of my instruments, for which I already have a > > dedicated > > account "Assets:Current Assets:Music Equipment EUR:Korg MS-20M". > > The opening balance for this item is 800 EUR. > > I now sold it and I got 1214 EUR for it. So I entered 1214 in the > > "Total > > Increase" column, with "Transfer" my EUR Checking account. Then I > > added > > splits: > > 800 "Total decrease" so that the item's value is 0 (as I sold it, I > > don't > > have anymore its value at home) - Transfer = "Korg MS-20M" account; > > 378,51 "Total decrease" (which is the surplus I made) - Transfer = > > "Income:Music Equipment Sold EUR" > > 35,49 "Total decrease", the price I paid for shipping this item to > > the > > seller - Transfer = "Expenses EUR:Post:Shipping cost of sales" > > > > Now when I look at the last account listed, I see 35,49 in the > > "Rebate" > > column and the "Expense" column is empty - which in the end results > > in a > > negative total: > > [image: image.png] > > What am I doing wrong? > > > > Thanks, > > Flavio. > > > > https://www.instagram.com/boniforti_music > > https://soundcloud.com/boniforti_music > > https://bonny-j.bandcamp.com > > _______________________________________________ > > 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.
