Subject: accounting for business payment of direct labor I have received a partial answer for this previously, but I am not sure how to complete it:
I work on computers, mostly I do the work, but sometimes contract out. All income is banked for bills/parts/supplies/services. Example: journal for Job 20230211.1 has: Process: 1 Assets:Jobs:2023:0211.WIP $500.00 2 Liabilities:Direct Labor $120.00 3 Assets:Stock $100.00 4 Liabilities:Direct Labor $180.00 5 Finished Goods $500.00 6 Assets:Jobs:2023:0211.WIP $500.00 Billing: 7 Assets Receivables: $500.00 8 Sales:Jobs $500.00 Payment goes into the bank account IF the labor is someone I hire, I pay his invoice, and the $500 leaves the bank Liabilities:Direct Labor $500.00 Liabilities:Payables $500.00 Liabilities:Payables $500.00 Assets:Bank $500.00 Normal, clean, easy... But if the labor is me, the money stays in the bank, and the liability is unresolved. One suggestion to clear the liability is: Liabilities:Direct Labor $500.00 Equity:Owners Contribution $500.00 What reduces the effects of the Equity:Owners Contribution? The cash does get spent on rent, parts, bills, etc, but the $500 (or other) keep increasing the equity in net worth, and other, reports. Obviously, I am missing something. I appreciate any comments / help Thank you for any help! _______________________________________________ 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.
