Thanks David - now I understand that bit as well. F. https://www.instagram.com/boniforti_music https://soundcloud.com/boniforti_music https://bonny-j.bandcamp.com
Am Mo., 25. Nov. 2024 um 20:57 Uhr schrieb David Cousens < davidcousen...@gmail.com>: > > Flavio, > > Even as a private individual you will be subject to at least taxation > legislation regarding income. The business legislation may or may not > apply depending on the level of activity. My wife is an artist, > formerly making her living from exhibitions and painting sales. We are > now retired and these days she only occasionally sells paintings mainly > to close friends - any income earned from that for example is > reportable, although not necessarily taxed. The devil is in the detail > here, hence our suggestions about getting professional advice. > > David > > > > On Mon, 2024-11-25 at 18:25 +0100, Boniforti Flavio wrote: > > 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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