Hi David. No taxation and regulations needed here: I'm a private individual, not a business.
F. https://www.instagram.com/boniforti_music https://soundcloud.com/boniforti_music https://bonny-j.bandcamp.com Am Fr., 22. Nov. 2024 um 19:58 Uhr schrieb David Cousens < davidcousen...@gmail.com>: > Boniforti, > > This is where you need an accountant in your jurisdiction. It all depends > on the business legislation and taxation legislation and often on > regulations and past court decisions and on the exact form of agreement you > reached with the buyer and the documentation of that that you have. > > If your taxation authority has an advisory service you could contact them > for advice about whether you treat shipping as an expense or liability. If > you issued an invoice or receipt to the buyer which specified the price of > the instrument, and the shipping costs and the total of 1214Eu, then there > is a good chance the shipping costs are effectively considered as being > paid by the buyer, so on receipt of the funds, that creates an obligation > on you to pay for the shipping, i.e. a liability as the funds are only > being passed to the shipper through you, so the second treatment is most > likely to be appropriate but I cannot know for sure. > > Cheers > David > > > On Fri, 2024-11-22 at 09:14 +0100, Boniforti Flavio wrote: > > Hi David. > Shipping is factually paid by me with my money, but the buyer is giving me > the money for the shipping. So do I understand it right that I could > separate this sale and just enter two transactions in my checking account? > One would be the shipping costs, the other is the rest from 1214 EUR? I > then would have two different "sources of money" for both zeroing the "Korg > MS-20M" account and for the "shipping costs of sales" account. Could this > work? > > F. > > https://www.instagram.com/boniforti_music > https://soundcloud.com/boniforti_music > https://bonny-j.bandcamp.com > > > Am Fr., 22. Nov. 2024 um 04:57 Uhr schrieb David Cousens < > davidcousen...@gmail.com>: > > 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. > > > _______________________________________________ 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. 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