The effective date for recording the expense transaction should be based on
when the goods or services are received rather than the due date of the bill or
the credit period provided by the vendor. This aligns with the accrual basis of
accounting, which states that expenses should be recognized in the period in
which they are incurred, not necessarily when they are paid.
Saludos Cordiales
Murugan
________________________________
From: Michael or Penny Novack <stepbystepf...@comcast.net>
Sent: 20 March 2025 13:16
To: Murugan Mariappan <m.muruganan...@hotmail.com>; gnucash-user@gnucash.org
<gnucash-user@gnucash.org>
Subject: Re: [GNC] Tracking UnPaid Bills
Answer
I use the business feature, which utilizes three types of dates:
- Bill Date: The date on the bill from the seller.
- Post Date: The date you post the bill into your books.
- Due Date: The date the bill is due. You can predefine payment terms like net
30 or define your own.
When you pay your bill before the due date, the bill is marked as paid
(payables will be debited and bank credited. Additionally, GNU can provide
alerts to remind you to pay the bill, which can be configured in the settings.
Not really. The reason has to with which YEAR the expense is charged when bills
ARRIVE in one year but not DUE until next. Remember, this began with discussing
utility bills ("open" account with vendor) so common to RECEIVE bills that are
not yet due. Could also be open accounts that are to be paid IN ADVANCE of the
expense (like subscribed services)
What date do you use as the effective date of the transaction? In other words,
bill arrives on date X, "billing date" Y (when prepared by vendor), bill due
date Z. I am not asking about the real time date when you enter into
"payables", but what date is assigned to that transaction? << that would be the
date in the expense account.
I'm just curious what people are doing.
Michael D Novack
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