how to recors a layby
Paul Lussier
pll@mclinux.com
Thu, 20 Dec 2001 14:48:34 -0500
In a message dated: Wed, 19 Dec 2001 20:42:27 CST
Linas Vepstas said:
>> Next question, my payments come from another asset account (savings at
>> bank), so I am transfering from one asset to another, total assets
>> remain the same correct?
>
>For a while, yes. If you can't get some of your money back, that would
>be an expense.
Wouldn't it be easier to track it as an expense anyway? If you
decide not to follow-through with the purchase and you get all your
money back, wouldn't that just be a "re-imbursement" flowing from the
expense account back to the asset account?
That's the way I typically enter things. For example, where I buy my
milk (at the dairy farm) they have a $.50 deposit per bottle. I have
an expense account Expenses:Bottle Deposit. Each milk purchase is a
split:
Date Descrition Deposit Withdrawal
12/20/01 Milk 1.45
Expenses:Groceries .95
Expenses:Bottle Deposit .50
Assets:Wallet 1.45
When I return some empties I end up with:
12/20/01 Bottle Return 2.00
Expenses:Bottle Deposit 2.00
Assets:Wallet 2.00
So wouldn't you do the same thing for a layby/lay-away where you got
your money back at the end? Treat each payment as an expense, then
create a re-imbursement back to your asset account?
>Its a hassle to track small items as assets; its easier to 'expense' them:
>i.e. to pretend that they've depreciated 100% on the day you bought them,
>i.e. to pretend they're now valueless, and record that depreciation as an
>expense.
>
>Seriously, do you think you'll find a buyer for your half-full, week-old
>gallon of milk? No, you've "deperciated" it 100% the day you bought it.
Exactly. (though one could argue that keeping track of bottle
deposits is a bit ridiculous too :)
--
Seeya,
Paul
----
God Bless America!
...we don't need to be perfect to be the best around,
and we never stop trying to be better.
Tom Clancy, The Bear and The Dragon