Computer Hardware Asset, Depreciation, and Expense Clarification

[John Ralls]

On Oct 18, 2011, at 10:07 PM, cgsmith wrote:

> Hi John,
> 
> Thanks for your reply.  This is for a business.  I know the scheme and
> everything that I will be using.  I guess my only question is the Newegg
> Invoice.
> 
> I entered it in as a bill but then the account the bill I currently have
> posted to is Expenses:Computer Hardware. 
> 
> Is this correct? I hope I am being clear on this.
> 
> I understand the whole Assets:Checking Account -> Assets:Server:Cost stuff. 
> But what about the "Expense Account" under the bill received from the
> vendor?
> 
> Thanks again for the assistance.
> 

To be strictly correct, you don't want an expense entry, but if the business subsystem insists on posting the invoice to an expense account, just create a transaction to transfer the amount to the assets:server account. Or don't post the invoice and do the purchase transaction manually.

Regards,
John Ralls