How to manage funds on hold

[Matthew Vanecek]

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It's the difference between accrual- and cash-based accounting.  I
practice accrual, generally.  That is, when I receive a check, or return
an item for a refund to my credit card, I recognize the amount at that
time (i.e., on the day I deposit the check, or on the day I return an
item for a refund).  It makes my life somewhat easier WRT record
keeping.  What you seem to be looking for is a cash-basis accounting
system.  That requires much more work, as Conrad pointed out.  You can
deposit the check, but you wouldn't recognize the deposit until the
check had cleared.  You could do it, but it's quite a bit more
masochistic than the standard accrual-based accounting methd. =3DP

No matter which accounting package you use, cash-based accounting will
*always* be much more work-intensive and require a more meticulous
hand.  Also, it's possible that it would provide a less accurate picture
of your financial situation than accrual-based.

The sub-accounts idea from Conrad would probably work best, if you're
determined enough...

On Sun, 2002-12-15 at 01:01, Gerard Beekmans wrote:
> Hey guys,
>=20
> I've got a question how to manage funds on hold, ie: when you deposit a c=
heque=20
> into your bankaccount which then gets put on holds for x amount of days=
=20
> pending the cheque to clear. This thus creates a difference between the b=
ank=20
> accounts balance and the available balance for withdrawal. For day to day=
=20
> banking it's the latter number that means most to me.
>=20
> Right now I see my assets as the total balance and I need to do some=20
> calculating to get my available balance.
>=20
> Is there an option to put (part) of a deposit on hold (ie: it not reflect=
ing=20
> in the assets until a set date, or a change is manually made)?
>=20
> Would this be classified as an "Accounts Receivable" I would be needing t=
o=20
> setup? If that's the case, how would I go about it? I read info in the ma=
nual=20
> about A/R and A/P but I didn't see how to set it up (where to create it, =
what=20
> type of accounts they are, etc).
>=20
> Thanks for any help,
--=20
Matthew Vanecek
perl -e 'print $i=3Dpack(c5,(41*2),sqrt(7056),(unpack(c,H)-2),oct(115),10);'
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*****
For 93 million miles, there is nothing between the sun and my shadow except=
 me.
I'm always getting in the way of something...

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