how to setup a revolving credit facility account
asgnucash at dsgml.com
Fri Jun 1 20:27:44 EDT 2007
On Sat, 2 Jun 2007, David Latham wrote:
> I was wondering how one sets up GNU Cash to deal with a revolving credit
Do you mean a line of credit? To me a revolving credit loan is just a
credit card, but maybe your terminology is different. It doesn't matter
though, they act the same way.
> This loan should act as both a liability account AND a current
> checking account.
Are you sure it's a checking account? I don't mean can you write checks,
but can the balance actually grow to where they owe YOU money?
But again, it doesn't matter, just set it up as a credit card - or a
liability, or a bank - it makes no difference, they all act the same. The
only difference is for you, so pick whichever looks best to you.
> Any transactions to the checking account should be
> transferred to the appropriate income / expense account AS WELL as being
> inversely linked to the loan account.
> Basically any income immediately reduces the loan and any payments
> immediately increase the loan.
> At the same time I wish to use the features of the checking account and
> double entry to accounts such as salary or groceries in the normal
You are over thinking this. Just do the transfer, it will work fine.
There are no specific features of "the checking accounts". You can do a
transfer from a credit card to groceries just fine. Or salary to credit
card if you like.
Most of the different account types doesn't change anything, they are for
you to organize things (and for the reports).
The system basically has a few types of accounts:
A/R and A/P
(Maybe some of the stock ones, not sure.)
Asset: Asset, credit card, liability, cash, bank
In your case you want one of the asset types, if you have some kind of
hybrid account, just pick one, it doesn't really matter, just decide if
usually you owe money, or usually have money - and if it varies, then
just choose 'Asset', so what if sometimes it's a negative asset.
PS. I really hope I understood your question, and that I'm not missing
some distinction in gnucash. Well if I got anything wrong hopefully
someone will correct me.
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