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
----

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