Association and group purchases paid out

[Dennis Powless]

Yes, I see that about expenses.

Here's my real issue.  We "loan" out the money (in your case as an asset) to
the members in a sense for the shirts.  Then collect the exact amount for
the shirts without profit or loss.

I really want to be able to keep track of how much money we still have 'out
there' to collect from the members.

We get checks or cash from them and it gets deposited in the checking
account.  When the order is originally placed we then write a check to them
for the whole amount.


Asset:T-shirt Order 1/3/2011    for 700.00 dollars.   With the other side
being the checking account.

Now, when I get funds from the members those funds get deposited in the
checking account, what I do in terms of the accounts is confusing me.

So,...      Assets:T-shirt Order 1/3/2011 for the amounts each time....with
the other split the checking account.

I was assuming that the funds from the members was considered income and had
to go in an income account.

How are these funds tracked in the overall equity equation?



Can I do something similar with donations we collect from members and that
gets donated to charities?


Thanks very much for your assistance.

D








On Sat, May 7, 2011 at 4:39 PM, Mike or Penny Novack <
stepbystepfarm at mtdata.com> wrote:

> Dennis Powless wrote:
>
>      There is no way to get around it. Just because using gnucash to keep
> the books doesn't mean that you don't need to understand the fundamentals of
> bookkeeping.
>
>       The purchase of the shirts from XYZ Company is not an "expense" for
> your organization. If in the end your organization makes a profit (takes in
> more money for the t-shirts) then that's "income" and if in the end takes a
> loss that will be an expense.
>
>       Your purchase transaction should debit an ASSET account "T-shirt
> inventory" and credit your checking account (if you have other things you
> buy as a group then have a parent account "inventory".
>
>        Each time somebody buys one of these T-shirts you debit cash
> (checking if that's where their check gets deposited, possibly temporarily
> in "undeposited funds") and credit the inventory. If you were selling each
> for more than your average cost then each time one was bought would be a
> split transaction also crediting "sales" which would be an income account.
> When all the T-shirts are gone the "T-shirt inventory" account should be
> zero.
>
> Michael D Novack, FLMI
>
>
>  I'm the treasurer of my FD association.  I have converted it all to
>> gnucash.
>>
>> We buy t-shirts from a company (that we each order and pay for) however,
>> the
>> FD will pay one check to the company that makes the t-shirts.  Then each
>> member will then pay the association back for the amount of their personal
>> order.
>>
>> I need to track this in Gnucash.
>>
>> I get checks that are Expenses:T-shirt Order Date 1 3 2011 for smaller
>> amounts   say 50.00 or 25.67 etc...
>>
>> There was one check written for 705.00 to the company XYZ.  I made this an
>> expense:T-shirt Order Date 1 3 2011   (We do this several times a year, so
>> I
>> assign a date)
>>
>> I want to be able to track how much has been paid and what is still
>> outstanding (I know the person who coordinates this keeps track too)
>>
>>
>> Should I make this a Liabitlity account?  Since it kinda a loan?  How
>> should
>> I handle this?
>>
>>
>> Or... should I set up the whole thing as a business account?  We only
>> write
>> out checks for general stuff ie Flowers, food, misc expenses and a local
>> store account for food.
>>
>>
>> Dennis
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>
> --
> There is no possibility of social justice on a dead planet except the
> equality of the grave.
>
>