accounts payable
Jean-David Beyer
jdbeyer at exit109.com
Thu Jul 24 11:42:19 CDT 2003
Jon Lapham wrote:
> Jean-David Beyer wrote:
>
>> Jon Lapham wrote (in part):
>>> Using the integrated A/P system in GnuCash:
>>>
>>> Firstly, the system is quite nice, but let me bounce some
>>> ideas/questions off everyone to make sure I'm fully
>>> understanding.
>>>
>>> What is the recommended way to bill something from which there is
>>> no obvious job and/or chargeback project? For example, the
>>> purchasing of paper products for the office. You could create a
>>> Job, maybe called "Office Supplies", or simply leave the Job
>>> empty? The "chargeback" would go to the company itself, I guess?
>>>
>>>
>> I would suppose that billing some entity requires such an entity.
>> These things you mention have no such entity.
>>
>> You would need an account, such as "overhead" or "general and
>> administrative," to which you "bill" these items.
>>
>
> There is a place in the bill where you specify what expense account
> to balance the transaction. Is that what you mean?
I believe so. If I billed 1/100 the price of a box of paperclips or 1/2
a Pink Pearl erasor to an actual customer, they would think I was
running some fly-by-night fleabag operation. Better to charge the
customer x% on an overhead line and y% on a G&A line and be done with
it. (The comptroller of a company I used to work for called the G&A
line: Get 'Em Again.)
>
> If so, the specification of the expense account (which works with
> accounts) is different from setting the job and chargeback (which
> works with Customers).
>
> Uh, I think. :)
>
Yes, but you could say you have 10 customers and each accounts for 10%
of your billing. In that case you could charge them 10% of your overhead
and G&A amounts, probably legitimately. We did that when I worked on
government contracts decades ago. IIRC, we billed them 95% on top of
directly chargeable expenses for overhead and 23% for G&A. The Navy
auditors accepted that. Others I worked for charged as much as 150% for
overhead.
--
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